We received two 1099-B's, one for the escrow account from the sale of a company two years ago, and another for a milestone payment from that same company. I don't know how to handle the 1099's using TurboTax. Is it Undistributed Capital Gains? Stocks/Mutual Bonds/Other? I would have just called it Gross Income, but evidently U.S. Bank disagrees and sent me a 1099-B?

You may need an accountant to handle this. 1099-B may be for the sale amount of the company. Now you may have a profit or loss depending upon the assets of the company.