Money is distributed from your HSA if paid directly to you or is paid from your HSA directly to a medical provider, say, by you using the debit card associated with the HSA. If you received a 2016 Form 1099-SA that you did not report, you should file an amended 2016 tax return to report it otherwise the IRS will assume that none of the money was used for medical expenses and the IRS will send you a bill for the tax on the entire gross amount. Simply said, Forms 1099-SA *must* be reported.
