Wrong Amount Reported on a 1099

[debodun]

My question involves personal finance in the State of: New York

I cashed two U.S. Savings Bonds in 2019 at the local bank. When I received my 1099, there was a lot more in box 3 than I had received for the bonds. I called the bank and they said I had cashed four bonds on that day. They also stated that the discrepancy it wasn't their problem and I'd have to take it up with the Treasury Department. I'm not sure what to do now, it's my word against the bank's. Any suggestions on how to proceed?

[adjusterjack]

Do you have any documentation? Did you ever make copies of the bonds? Any receipts from the bank for when you cashed them? Did you own more than 2 bonds?

You might find some help on the Treasury Department's website.

https://www.savingsbonds.gov/

[budwad]

My question involves personal finance in the State of: New York

I cashed two U.S. Savings Bonds in 2019 at the local bank. When I received my 1099, there was a lot more in box 3 than I had received for the bonds. I called the bank and they said I had cashed four bonds on that day. They also stated that the discrepancy it wasn't their problem and I'd have to take it up with the Treasury Department. I'm not sure what to do now, it's my word against the bank's. Any suggestions on how to proceed?

Your 1099 comes from the US Treasury. It does not come from the bank. The chances that the Treasury Department made a mistake is highly unlikely. You sign the bond and provide your SS number. The 1099 reflects the bonds associated with your SSN that you cashed in 2019. Ask the Treasury for images of the bonds you cashed with your SSN.

You will likely find that you cashed 4 bonds on that day and just remember it incorrectly.

[debodun]

I never had trouble cashing bonds before, except this time when the teller didn't seem to know what to do with them. He had to call the branch manager over and even he didn't know what to do. They said they would credit the amount to my account when they figured out how to handle paper bonds. Other than that, I have no receipts or anything else in writing except the serial numbers. They did not offer to give me anything either, which I thought odd.

I had looked at Treasury Direct and knew the amount I should have received which was what was deposited in my bank account. I only cashed 2 bonds and I remember because it was only about a month ago. However, the amount on the 1099 was over $200 more than the amount that was deposited in my account.

[budwad]

Call the Treasury and ask them what bonds you cashed this year. Their number is on the website linked to. They are very helpful. I have been dealing with them for more than 40 years and they don't give you any runaround.

[adjusterjack]

You have the serial numbers and the money was deposited into your account. That's a good start. Now look up your account on the bank's website and see if it says what kind of deposit it was.

Whatever happens, you report the correct amount on your tax return and attach an explanation. You'll want to do paper return and not eFile.

[llworking]

You have the serial numbers and the money was deposited into your account. That's a good start. Now look up your account on the bank's website and see if it says what kind of deposit it was.

Whatever happens, you report the correct amount on your tax return and attach an explanation. You'll want to do paper return and not eFile.

Or, they can go ahead and efile and the preparer can attach either an unformatted statement to the return, or a PDF attachment.

[flyingron]

Your 1099 comes from the US Treasury

Not necessarily. If you redeem by TreasuryDirect it comes from the IRS. If your redeem at a bank it comes from the bank.'

There's more wrong here (unless the poster is being imprecise). The amount in Box 3 should be only the INTEREST not the entire redeemed value.

[Taxing Matters]

However, the amount on the 1099 was over $200 more than the amount that was deposited in my account.

Is there any tax withholding shown on the 1099? If so, how much?

[budwad]

Not necessarily. If you redeem by TreasuryDirect it comes from the IRS. If your redeem at a bank it comes from the bank.'

There's more wrong here (unless the poster is being imprecise). The amount in Box 3 should be only the INTEREST not the entire redeemed value.

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.