"It should not be taxable"

But, for reference, Bank A didn't know this. They don't know anything about what the taxpayer will do with those funds, and even providing the info as intent, doesn't mean it happened or met the requirements.

Only the taxpayer knows if they did everything right and that this qualifies for rollover treatment. That's why you are entering the info into the worksheet. Enter the 1099-R as it was issued, then address the followup actions that the taxpayer did.

Realize, please, that if there was withholding on that distribution, did the rollover include that amount as a "make up" amount of funds? If not, you have a Partial Rollover and partial taxable distribution.