HSA

[AWalls76]

Hello, I need help. I filed my taxes for 2020 timely and included my HSA information using Turbo Tax. I filled out everything to the best of my ability using the turbo tax prompts regarding HSA data. I recently received a notice from the IRS saying that I owed nearly $4.000 because I needed to fill out part II of the 8889 form. I need help, I am making payments to the IRS and I do not know how to get this resolved. I have contacted TurboTax so many times and I cannot even get in touch with a live person-EVER! Desperate for answers.

[Mike9241]

neither we nor turbotax can see the documents used to prepare that tax form. part II is for distributions 

evidently there were distributions but the info the iRS has is that not all were qualified distributions or you misentered something.   you probably need a tax pro or this service to look over your IRS notice and other documents:

if you did not pay for audit defense s services for that return there will probably be  a fee

The Audit Defense service is provided by TaxResources, Inc., also called TaxAudit.com, in partnership with TurboTax. If you paid for Audit Defense and you received a notice, call TaxResources, Inc. at 877-829-9695, or report your notice on their website at http://intuit.taxaudit.com/. Do not contact the tax agency until you have spoken to TaxResources. They may contact them on your behalf.

[BillM223]

As Mike says, Part II of the 8889 deals with distributions from your HSA.

My guess is that you spent money from your HSA in 2020, and so your HSA custodian sent a copy of the 1099-SA reporting this distribution to you and the IRS...however, you didn't get your copy, and so did not enter it into TurboTax. 

If you did not enter your 1099-SA into TurboTax, then you would not have answered the question, "were these distributions all for medical expenses?". If not, then all the distributions that the IRS saw would be added to your income, causing you to owe tax, penalties, and interest.

Like Mike, I suggest that you contact a local Enrolled Agent or CPA to go over this problem with you and represent you (this likely means that they would respond to that letter on your behalf). You will not have to go see the IRS, this is something can most likely be handled with mail. Your EA or CPA will have you contact your HSA custodian to ask for a copy of the 2020 1099-SA, and if you can't get it from them, the EA/CPA will know another way to get it.