Hi all,
I had a client come in to my office and plop down 116 series EE savings bonds worth over $70,000 (it took the poor bank teller 4 hours to enter them into the computer system). The issuance dates range from
1972 up until 1992. Some of the bonds are past their maturity date. The TP didn't claim the interest income in the years of maturity like she should have. All 116 bonds were redeemed at one time (in 2011). My questions are as follows:
- How do I amend the returns for those years not yet past the statute of limitations? Do I simply file a 1040X showing the additional income? There isn't a 1099 for those years that the income can be matched to.
- For 2011, I'm concerned that the redeeming bank is simply going to issue a 1099 showing all of the proceeds from the ,000 redemption. But since some of this income was or should have been reported in past years, not all of the income should be claimed in 2011. How do I handle this? Do we report the correct income and await a CP2000 regarding the discrepancy between the return and the 1099? Do we ask the bank for a correction (which I'm 99% confident they won't do)?
Your thoughts and advice are much appreciated.