"and form 5498 number 1 IRA contribution shows $4,000.00."

If you are describing Box 1, then there already is some contribution for that year.

If you see it in Box 2, then it is Rollover, not contribution as New Funds.

In any case, you need to know what the taxpayer qualifies for. Box 1 would be part of what they are allowed, as it reflects contributions already made for that tax year.