Advice from @BillM223 is comforting but inaccurate. Nowhere in those IRS instructions does it say you DON'T need to file the 5329.
The fact that no taxes are owed is a separate issue. But I challenge anyone to find me IRS verbage that states "IF you have withdrawn your excess HSA contributions .... THEN you DON'T HAVE TO FILL OUT FORM 5329."
And the original poster is correct. If you do fill out 5329 in accordance with the IRS instructions, you will get taxed again. This needs to be properly addressed.
