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  1. #11
    Join Date
    Oct 2006
    Posts
    15,984

    Default Re: Wrong Amount Reported on a 1099

    Quote Quoting budwad
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    Not correct. First, the IRS does not issue 1099s. Banks that are not part of the Federal Reserve system become agents of the Federal Reserve for the purposes of selling and redeeming savings bonds. If you buy a bond through a bank, it is issued by the Treasury Dept. When you redeem a bond at a bank, your 1099 is issued by the Treasury Dept.

    https://www.frbservices.org/resource...-customer.html

    My father (starting in 1950) bought a $50 EE saving bond (cost $25) every week until he retired form self-employment around 1980 . That is roughly 1,560 bonds. When he died, my mother had the Treasury reissue those bonds in her name. When she died, I as executor of her estate had the Treasury reissue 50% of the bonds in my name and 50% in my brother's name. EE bonds reached final maturity in 30 years. I would go to my local bank to cash them in and I always got a 1099 from the US Treasury Dept. not the bank.

    The total redemption value less the $25.00 purchase price is what was reported as interest. Back a few years you could roll the bonds into HH bonds and not have to pay tax on the interest but you got taxable interest twice a year. The 1099 came from the Treasury Dept. That is no longer an option.
    Bud,

    I have seen, many, many 1099's for savings bond redemptions issued by banks. I don't recall ever seeing one issued by the Treasury Department although I am sure some are.

  2. #12
    Join Date
    Jan 2019
    Location
    Pugetopolis
    Posts
    113

    Default Re: Wrong Amount Reported on a 1099

    Quote Quoting llworking
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    I don't recall ever seeing one issued by the Treasury Department although I am sure some are.
    The US Treasury has issued the 1099 for every US Savings bond I have redeemed

  3. #13
    Join Date
    Oct 2006
    Posts
    15,984

    Default Re: Wrong Amount Reported on a 1099

    Quote Quoting MaltbyMark
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    The US Treasury has issued the 1099 for every US Savings bond I have redeemed
    I am a tax professional so I probably see 100 or so 1099s for savings bonds every year. The vast majority of what I see come from banks. As I said before, I don't recall seeing any from the treasury department, but I am sure that they exist.

  4. #14
    Join Date
    Oct 2014
    Posts
    7,710

    Default Re: Wrong Amount Reported on a 1099

    Quote Quoting llworking
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    I am a tax professional so I probably see 100 or so 1099s for savings bonds every year. The vast majority of what I see come from banks. As I said before, I don't recall seeing any from the treasury department, but I am sure that they exist.
    If the bonds are held through Treasury Direct then the Treasury will issue the Form 1099 INT. Otherwise they come from the bank that redeemed them. For example, the Treasury Direct web page on Series EE/E savings bonds explains that:

    You can see the interest on your IRS Form 1099-INT.

    • If a financial institution pays the bond, you will receive a paper 1099-INT from that financial institution either soon after you redeem your bonds or within the first two months after the end of the year in which you redeem your bonds.
    • If you redeem electronic bonds in your TreasuryDirect account, your 1099-INT will be available through your account.

    So the issuer of the Form 1099-INT for savings bonds depends on how they are held and redeemed. It might be the Treasury or it might be a bank.

  5. #15
    Join Date
    Nov 2013
    Posts
    6,701

    Default Re: Wrong Amount Reported on a 1099

    Quote Quoting Taxing Matters
    View Post
    If the bonds are held through Treasury Direct then the Treasury will issue the Form 1099 INT. Otherwise they come from the bank that redeemed them. For example, the Treasury Direct web page on Series EE/E savings bonds explains that:

    You can see the interest on your IRS Form 1099-INT.

    • If a financial institution pays the bond, you will receive a paper 1099-INT from that financial institution either soon after you redeem your bonds or within the first two months after the end of the year in which you redeem your bonds.
    • If you redeem electronic bonds in your TreasuryDirect account, your 1099-INT will be available through your account.

    So the issuer of the Form 1099-INT for savings bonds depends on how they are held and redeemed. It might be the Treasury or it might be a bank.
    I will admit when I'm wrong. I went back and looked at the 1099 I got for the last bond I cashed (2012). It came from the bank.

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