03-18-2025, 12:45 AM
I believe there are 2 forms associated with HSA's that are funded in a year and where distributions are made in that same year. If the HSA comes through your employer you should see the contribution on Form 8889. Distributions are documented by the holder of your HSA on a 1099-SA that you'll get for any given year. Copies of these are sent to the IRS.
I'd file an amended return. There may be fewer employees in the IRS but their (ancient!) computers just roll along and you should get a letter saying you have a 1099 that reports a distribution without a matching Form 8889. So, you failed to report income from your HSA. And they'll propose a tax and penalties and interest. You can answer that with documentation and it should go away. But, I'd rather file an amended return and not get a paper audit letter!
I'd file an amended return. There may be fewer employees in the IRS but their (ancient!) computers just roll along and you should get a letter saying you have a 1099 that reports a distribution without a matching Form 8889. So, you failed to report income from your HSA. And they'll propose a tax and penalties and interest. You can answer that with documentation and it should go away. But, I'd rather file an amended return and not get a paper audit letter!