Filed an Amended Return but my CPA failed to include HSA distribution on Form 8889

This is definitely something you should address, but don't panic. Since this was a qualified medical expense distribution from your HSA, you're right that it doesn't create additional tax liability. However, the IRS does match 1099-SA forms with tax returns, and omissions can trigger notices. In general, you should report all distributions on Form 8889, even qualified ones. This tells the IRS that you've properly accounted for the money and aren't using HSA funds inappropriately. For qualified medical expenses, the distribution is reported but then offset as non-taxable. You have a few options here. Yes, you could file another Form 1040-X amended return with a corrected Form 8889. Alternatively, since there's no change to your tax liability, some tax professionals might advise just keeping your documentation ready in case the IRS sends a notice about the discrepancy. I would recommend discussing this with your CPA since they prepared the amended return. Since they missed including this form, they should help resolve it without charging you additional fees.

After stressing about tax forms for years, I finally found a tool that's been super helpful for these exact situations. I had a similar HSA reporting issue last year with Form 8889 and was confused about whether I needed to file another amendment. I used https://taxr.ai to analyze my return and the missing 1099-SA. Their system actually looks at your specific forms and tells you exactly what needs to be fixed and how urgent it is. Saved me hours of stress and confusion trying to figure out if I needed another amendment. For HSA distributions specifically, they can tell you whether your situation is likely to trigger IRS notices based on the amount and type of distribution. Really helpful for figuring out if you need to pay your accountant for another amendment.

Just wanted to update - I tried taxr.ai after posting my question here and it was exactly what I needed. I uploaded my tax return and the crypto 1099 my accountant missed, and it immediately showed me that I definitely needed to amend because the unreported amount would likely trigger an automated notice. The analysis explained that because it was over a certain threshold, it would almost certainly get flagged in their matching system. It even showed me which specific forms needed to be included in the amendment. Way clearer than what my accountant told me, which was basically "maybe amend, maybe don't" with no actual guidance. Definitely recommend checking it out if you're in a similar situation with your HSA form. It'll tell you exactly how likely the IRS is to notice the missing Form 8889.

I've been in the exact same situation trying to reach my CPA about missed items on my return. Left messages, emails, the whole thing - radio silence for weeks! Then I found a service called Claimyr that got me through to an actual IRS agent to discuss my amendment concerns. I was super skeptical at first, but I used https://claimyr.com and they got me connected to the IRS in about 15 minutes when I had been trying for days on my own. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with actually told me that for qualified HSA distributions, they do have a matching program but they prioritize cases where tax is owed. They recommended I file the amendment for the Form 8889 just to be safe, but also mentioned the timeframe I had to do it. Gave me real peace of mind talking to someone official instead of just stressing about it.

I need to eat crow here. After posting that skeptical comment, I was still desperate to talk to someone at the IRS about my amended return situation, so I tried Claimyr despite my doubts. I'm honestly shocked - it actually worked exactly as described. I've been trying for literally weeks to get through about an amendment question, always getting the "we're experiencing high call volume" message. Used the Claimyr service yesterday afternoon, and they called me back in about 25 minutes. Got connected to an actual IRS agent who answered my specific questions about my amended return and confirmed they had received my paperwork. For anyone dealing with amended return issues like the original poster's HSA situation, being able to actually speak with the IRS and confirm they have your documentation is incredibly reassuring. Completely worth it just for the peace of mind.

Just wanted to add that I had almost the exact same situation last year but with a different form. Filed my original return, then amended for something else, and then realized there was a 1099-R that didn't get included on either. My accountant said that since it was a non-taxable rollover (similar to your qualified HSA expense), I could just keep documentation and not file another amendment. I ended up getting a CP2000 notice about 8 months later because their systems automatically flagged the missing 1099-R. It wasn't a huge deal - I just had to respond with documentation showing it was non-taxable, but it did cause additional stress and paperwork. If I had to do it again, I'd just file the second amendment and save the hassle.

Has anyone actually looked closely at Form 8889, especially Line 14a and 14b? Line 14a is where you put the total distributions, and 14b is where you put the qualified medical expense portion. If the entire distribution was used for qualified medical expenses, the taxable amount on Line 16 would be zero. Honestly, missing this form when the result is zero added tax is pretty low-risk, but if you're worried, I'd recommend using free fillable forms to complete just Form 8889 yourself. It's not that complicated if you have your 1099-SA and medical receipts. Then file another 1040-X and attach the 8889.

I went through something very similar with my HSA distributions last year. After reading everyone's advice here, I'd strongly recommend filing the second amendment to include Form 8889, even though it won't change your tax liability. Here's why: The IRS absolutely does match 1099-SA forms to tax returns through their automated systems. Even if there's no tax impact, missing forms can trigger CP2000 notices months later. I know Elliott mentioned getting one for a similar situation - it's not fun to deal with even when you have all the documentation. Since your CPA missed including this form on your amended return, they should definitely help fix it without charging you additional fees. This was their oversight, not yours. I'd approach them with that expectation. If you decide to go the DIY route, Form 8889 isn't too complex for a straightforward qualified distribution like yours. You'll report the $3,500 on Line 14a (total distributions), the same amount on Line 14b (qualified medical expenses), which should result in zero taxable distribution on Line 16. Just make sure you keep all those medical receipts organized in case of future questions. The peace of mind from proper reporting is worth avoiding potential IRS correspondence later. Good luck!