I FOUND IT!!!…
The Short:
Log in to the bluehost cpanel and under the mail heading click on MX Entry. Select the domain you are trying to send email to and then select Remote Mail Exchanger. It should fix it.
The Long:
My DNS is managed through Godaddy
I’m Hosting with Bluehost
My Mail is through Google Apps and the MX records are set up at godaddy.
The MX Record setting in bluehost controls where the email will send to and since it thought the email address didn’t exist because it wasn’t controlling the mx record it sent back a FALSE… You have to tell bluehost that you are using another service… This solved my problem, hope it helps you.