1099-R Pennsylvania State filing Questions

Hi Turbo Tax Community,

In 2020 my father passed away and I used Turbo Tax Business to file 1099-R form for the estate. I read in the Turbo Tax community that in my state of Pennsylvania no state taxes needed to be remitted for a 1099-R form for 401K distribution due to death. However, just recently I received a letter from the Pennsylvania Department of Revenue stating that I did owe tax when I filed; I owed tax liability. I read over the tax return and I ensured that all fields said no tax.

Was I correct about the 1099-R? Did I do something wrong? Were there some sort of exceptions? Did I fully misunderstand the information? I would just like to make sure I understand first and ask the community where I heard the information before I move forward.

Thank you all for your help in advance!