My accountant forgot to file Form 8889 with last year's tax return - should I amend?

You should definitely consider filing an amended return with Form 8889. This form is required to report all HSA contributions, even if you didn't take any distributions. Without it, the IRS might not recognize those contributions as being properly reported. The main issue is that Form 8889 establishes your HSA basis (the amount you've contributed), which is important when you eventually start taking distributions. Without proper tracking through Form 8889 each year, you could face problems proving which distributions are qualified tax-free withdrawals in the future. Additionally, if you had any excess contributions, those would need to be addressed on this form. Since the contributions were properly coded on your W-2, the IRS is aware of them, which makes this more of a documentation issue than a tax evasion concern, but it's still best to correct it.

I went through almost the exact same situation last year! My accountant missed my HSA contributions and I was freaking out. I used https://taxr.ai to analyze my return and it immediately flagged the missing Form 8889. The software showed me exactly what I needed to fix and even explained how the HSA reporting works year-to-year. The service walked me through what would happen if I didn't amend (potential flags in IRS systems about unreported HSA activity) versus amending (correcting the record but generally no penalties since it doesn't change your tax due). Super helpful for understanding the implications specific to my situation.

I was initially skeptical about taxr.ai but decided to try it after seeing comments here. Really glad I did! I uploaded my last two years of returns and discovered my accountant missed not just my HSA form but also some education credits I was eligible for. The report highlighted exactly which forms were missing and explained the impact in plain English. The coolest part was how it flagged potential amendments that would actually get me money back vs. ones that were just paperwork fixes with no financial benefit. Saved me from filing unnecessary amendments while identifying the ones worth pursuing. Definitely using this before I file this year to catch any issues before submitting.

For anyone dealing with HSA issues or other tax problems that might require talking to the IRS - I highly recommend using https://claimyr.com to get through to an actual IRS agent. I spent WEEKS trying to call the IRS directly about a similar HSA reporting issue and kept getting disconnected or stuck on hold for hours. Claimyr got me connected to an IRS representative in under an hour. The agent confirmed that I needed to file an amended return with Form 8889, but also told me there wouldn't be any penalties since I wasn't trying to hide income or claim improper deductions. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c It's frustrating how impossible it is to reach the IRS directly these days, especially for seemingly simple questions like this.

I have to eat my words about Claimyr. After posting that skeptical comment, I decided to try it anyway because I was so frustrated with my own IRS situation (missing tax refund from last year). The service actually did exactly what they claimed - got me through to an IRS agent in about 45 minutes when I'd been trying unsuccessfully for weeks. The agent I spoke with was able to locate my refund in their system and explained it was held up because of a discrepancy with my HSA reporting (ironically similar to OP's issue). They walked me through exactly what I needed to do to resolve it. Would've never known this without actually talking to someone there. Sometimes it's worth paying for convenience when the alternative is pulling your hair out for weeks.

For OP's specific question about consequences - while you should definitely file the 8889 eventually, I've seen many clients miss this form without any immediate issues from the IRS. The bigger problems come later when you start taking distributions and have no documented basis. The risk scales with the amount in your HSA. If you've been contributing for years without filing 8889s, that's thousands of dollars at risk of being incorrectly taxed later. If this is your first year with an HSA and the amount is small, the urgency is lower (though still should be fixed).

Anyone know if HSA providers (like Health Equity or Fidelity) report your contributions directly to the IRS? I'm wondering if there's a validation system in place where the IRS would automatically notice if Form 8889 is missing but the W-2 shows HSA contributions.

I'd recommend filing the amended return sooner rather than later. While you might not face immediate penalties, the IRS computer systems are designed to cross-reference different forms and documents. When they see HSA contributions on your W-2 and Form 5498-SA from your HSA provider but no corresponding Form 8889, it creates a discrepancy that could trigger automated notices down the road. The amended return process is straightforward for this situation since you're not changing your tax liability - just adding proper documentation. File Form 1040-X with the missing Form 8889 attached. Most importantly, this establishes your HSA basis correctly from the beginning, which will save you headaches when you eventually start taking distributions for medical expenses. Your accountant should really handle this amendment at no charge since it was their oversight. If they're reluctant, that might be a red flag about their attention to detail for future returns.

I'm dealing with a very similar situation right now! My HSA contributions showed up on my W-2 but I just realized Form 8889 is missing from my return. After reading through all these responses, I'm convinced I need to file an amended return. One thing I'm curious about - has anyone here actually received an IRS notice about missing HSA forms? I'm wondering how long it typically takes for their systems to flag these discrepancies between W-2 reporting and missing 8889 forms. The automated cross-referencing that was mentioned sounds like it could catch this eventually, but I'm not sure what their timeline looks like. Also, for those who have filed amendments for missing HSA forms - did you use tax software or have a professional handle it? I'm trying to decide if this is something I can tackle myself or if I should bite the bullet and pay someone to make sure it's done correctly.

I'm a tax professional and see this exact situation frequently. You absolutely should file an amended return with Form 8889. Here's why it matters beyond just the documentation aspect: The IRS matching system will eventually catch this discrepancy between your W-2 HSA contributions (Box 12 code W) and the missing Form 8889. When it does, you'll likely receive a CP2000 notice asking you to explain the mismatch. It's much cleaner to proactively fix this with an amendment rather than respond to an IRS notice later. More importantly, Form 8889 serves several critical functions: 1. Establishes your contribution basis in the HSA 2. Confirms you were eligible to make contributions during that tax year 3. Calculates any excess contributions and required corrections 4. Sets up proper tracking for future qualified distributions Since Washington has no state tax implications, this is purely a federal documentation issue. The amendment should be straightforward - Form 1040-X with the missing Form 8889 attached. No change to your tax liability, just correcting the record. I'd strongly suggest having your accountant handle this amendment at no charge since it was their oversight. If they're reluctant, that raises questions about their competence for future filings.