I got an IRS letter that states my return does not match the records they have from others. In particular, it shows I reported $0 but they were reported a non-zero amount for taxable retirement income from a rollover IRA. However, in my case, this income is not taxable because I directly rolled it over to my new employer's 401(k). It is listed on my 1040 on line 15a of 2010 1040 with a left column note (put there by TurboTax) that states: "Rollover".
What has gone wrong? Is it that the target of the rollover did not report receiving the funds or that the sender did not properly report it was a direct rollover?