As previously discussed here, taxpayers who own savings bonds can change their reporting method from Method 1 to Method 2 by simply reporting the accumulated interest on their tax forms. The exact wording in Publication
550 says: "If you want to change your method of reporting the interest from method 1 to method 2, you can do so without permission from the IRS. In the year of change, you must report all interest accrued to date and not previously reported for all your bonds."What is the meaning of "to date"? If you file your 2012 return on April
1st, does "to date" mean as of April 1st? Or, since the return is for tax year 2012, does "to date" mean through December 31st?Also, interest on these bonds is applied twice a year, on July 1st and January 1st. So whichever date you use, do you report as of the most recent date interest was applied, or do you have to calculate the interest accrued from the last date interest was applied?