Level 5

Question

Savings Bonds Redeemed

Forum|Forum|2 years ago
April 10, 2024
2 replies
32 views

Taxpayer received Savings Bonds from his deceased father. He got everything converted and redeemed through Treasury Direct.

All the funds received were deposited in March 2023. The taxpayer received 1099-INT forms but they are (3) 2021, 2022, and 2023. Since the interest was not received until 2023, can I include all the 1099's on the 2023 return.

All the transactions on Treasury Direct are dated 2023.

Thank you!

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BobKamman

Level 15

What year did the father die? Has his final return been filed yet? Did it report any of this interest income?

Are you saying that the 1099's show the year paid as 2021, 2022, and 2023? The interest is taxable in the year the bonds stop accruing interest, but I haven't seen that enforced. Maybe they are doing it now.

S

Summit1Author

Level 5

I will confirm father’s final return has been filed and if any interest was previously paid snd reported.

The (3) 1099’s total the amount of interest reported by Treasury Direct.

BobKamman

Level 15

But you're saying, Treasury issued a 2021 1099-INT in 2023? That's progress.

qbteachmt

Level 15

"But you're saying, Treasury issued a 2021 1099-INT in 2023?"

I read this as "received."

"Taxpayer received Savings Bonds from his deceased father."

The father dies in 2020.

"He got everything converted and redeemed through Treasury Direct."

Because three years later, he finally followed up? And up to that point, never checked the TD account to see these 1099s were available...I find it hard to believe they were freshly issued just now.

I sense amended returns in his future.

Don't yell at us; we're volunteers

S

Summit1Author

Level 5

The taxpayer brought me an envelope with the information he received from Treasury Direct. I got my first look at the 1099's that he printed of of Treasury Direct.

2023 1099-INT was available on the website 01/03/23

2022 1099-INT was available on the website 08/01/22

2021 1099-INT was available on the website 09/21/21

I am thinking these are the dates the bonds matured. Taxpayer received the the funds and deposited it on April 7. I am a little surprised the IRS has not contacted him about the unreported interest in 21 and 22.

I think the proper action is to amend the 21 and 22 return and file the 23 normally.

BobKamman

Level 15

"2023 1099-INT was available on the website 01/03/23"

Really?

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