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Old 08-16-2013, 01:34 AM
 
27,159 posts, read 15,334,701 times
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I received a letter today from the IRS telling me I owe $1739. tax on $4300. paid out directly to Medical providers in 2011 from my HSA account.

I had hernia surgery in November 2011.
No funds have gone anywhere except to Doctor's and Hospitals.

Is this a typical claim for the IRS to make and demand of those with HSAs?

They say I have three weeks to pay it.
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Old 08-16-2013, 01:45 AM
 
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Dispute the tax bill. HSA distributions are non taxable. Was the HSA account set up before you had the surgery? If not, then you will owe tax on the distribution.

Publication 969 (2012), Health Savings Accounts and Other Tax-Favored Health Plans
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Old 08-16-2013, 01:45 AM
 
Location: the AZ desert
5,035 posts, read 9,228,857 times
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Maybe someone tagged you as "conservative"?
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Old 08-16-2013, 01:58 AM
 
27,159 posts, read 15,334,701 times
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Quote:
Originally Posted by CheyDee View Post
Maybe someone tagged you as "conservative"?


Ha!
Don't think it didn't cross my mind with all the IRS has been doing for the past couple of years.


The account has been set up for almost 7 years now so that's not a problem.

They are claiming the payments are part of my income.
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Old 08-16-2013, 03:14 AM
 
11,768 posts, read 10,269,301 times
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Quote:
Originally Posted by bluesjuke View Post
Ha!
Don't think it didn't cross my mind with all the IRS has been doing for the past couple of years.


The account has been set up for almost 7 years now so that's not a problem.

They are claiming the payments are part of my income.
They or the trustee made a mistake. Hernia would be covered under surgery or operations.

Publication 502 (2012), Medical and Dental Expenses
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Old 08-16-2013, 03:18 AM
 
27,159 posts, read 15,334,701 times
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It has to be a mistake.

Thank you for the info, sure is disconcerting to receive this in the mail.
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Old 08-16-2013, 03:43 AM
 
26,514 posts, read 15,092,794 times
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Quote:
Originally Posted by CheyDee View Post
Maybe someone tagged you as "conservative"?
In the age of Obama, conservatives do have to at least have it in the back of their mind that a government agency could target them for political beliefs...it is not like Obama is working hard to get to the bottom of it.
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Old 08-16-2013, 08:56 AM
 
4,738 posts, read 4,437,385 times
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Quote:
Originally Posted by michiganmoon View Post
In the age of Obama, conservatives do have to at least have it in the back of their mind that a government agency could target them for political beliefs...it is not like Obama is working hard to get to the bottom of it.

Only the ones with their heads in the "moon" sheesh. I love how you ignore the fact the IRS also targeted liberal groups too.. .


Anyway. . .I wonder if I'll get a letter. I never pay doctor bills straight from an HSA instead I pay with a credit card and do a cash withdrawl. . . .which I would ALWAYS recommend (paying with a HSA debit card or Check means you are missing out on rewards i.e. airline miles/etc. Thats for suckers).


Wonder what triggered the letter. Maybe you miss-field something on your tax return?
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Old 08-16-2013, 09:03 AM
 
Location: Great State of Texas
86,052 posts, read 84,531,102 times
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Quote:
Originally Posted by ChrisFromChicago View Post
Only the ones with their heads in the "moon" sheesh. I love how you ignore the fact the IRS also targeted liberal groups too.. .


Anyway. . .I wonder if I'll get a letter. I never pay doctor bills straight from an HSA instead I pay with a credit card and do a cash withdrawl. . . .which I would ALWAYS recommend (paying with a HSA debit card or Check means you are missing out on rewards i.e. airline miles/etc. Thats for suckers).


Wonder what triggered the letter. Maybe you miss-field something on your tax return?
Pray you don't ever get that type of letter from the IRS.
It takes months to get things straightened out.
And all during that time you are supplying them with what they need but if they don't like it they will send you another letter that is even more threatening and demanding more info.

I went through it years ago when I transposed the SS number of my son on my 1040.
It took 6 months to get that "typo" acknowledged by the IRS that it was a typo.

I got letters threatening jail time, fines that were more than my yearly salary, etc.
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Old 08-16-2013, 09:22 AM
 
69,368 posts, read 64,143,658 times
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Quote:
Originally Posted by bluesjuke View Post
It has to be a mistake.
Dont feel bad, I got a tax bill for $154K from the IRS for stock sales I made because they didnt calculate what I bought the stock for as a cost, and considered the sales as net profit. Took me over a year to get it straightened out.

Imagine how many people get the letter you just got and send them a check without question..
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