What must taxpayers report regarding rollovers between HSAs?

When it comes to Health Savings Accounts (HSAs), taxpayers are required to report the receipt of funds when a rollover occurs between HSAs. This requirement is significant because it ensures proper tracking of the movement of funds between accounts and maintains compliance with IRS regulations.

When a taxpayer rolls over funds from one HSA to another, they typically receive the funds before depositing them into the new HSA. Reporting this receipt is crucial for the taxpayer to document that the funds were indeed intended for rollover and not for personal use, which would lead to tax implications.

While other options may address aspects of the rollover process, they do not encompass the necessary reporting obligation associated with the individual's receipt of the funds, which is what the IRS specifically mandates for taxpayers to ensure they are not subject to taxes and penalties associated with improper use of HSA funds.