This rejection can occur if you mistyped or omitted the Payer Name and/or Federal ID Number (FEIN) when you entered your 1099-R.
- If the FEIN is correct, i's very likely that the payer's data at the IRS is wrong. In this case, you'll have to print and mail a conventional paper return. The IRS won't accept your e-file if the FEIN doesn't match what's in their database.
Note: If the Federal ID Number on your 1099-R is blank due to a foreign payer, you'll need to mail your return because the FEIN is required for e-filing.
If a domestic payer omitted their FEIN, contact them for the 9-digit number so you can e-file.
Source: TurboTax FAQ 1 and TurboTax FAQ 2