Pub. 14 2019-2020 Issue 3

WWW.NEBANKERS.ORG 26  A MAJOR AREA OF COMPLIANCE IN OFFERING AND maintaining health savings accounts (HSAs) is accurately reporting HSA transactions. Incorrectly reporting HSA transactions may cause the IRS to pay more attention to your organiza- tion (and not in a good way). To prevent being audited and potentially penalized by the IRS, it’s important that you and your staff understand the HSA reporting requirements—including when not to report certain transactions. Nonreportable Transactions Certain Excess Contributions According to IRS Notice 2008-59, Q&A 24, if an employer erroneously contributesmore than the statu- tory limit ($3,500 for self-only coverage and $7,000 for Knowing When Not to Report HSA Transactions Jennifer Bassett, QKA, CIP, CISP, CHSP Note that in the case of a mistaken distribution that has already been reported on Form 1099-SA, the financial organization should issue a corrected Form 1099-SA.