How Report Savings Bonds Renewed Late - Are 4 amended returns required?

Forum|Forum|2 years ago
January 3, 2024
2 replies
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On January 3, 2024 I discovered some paper series EE US savings bonds my joint spouse owns that matured in 2019, 2020. 2021, 2022, and 2023. I want to cash them in at a bank, but everything I Google seems to say that I need to file an amended return (TurboTax may work) for each of those years - which seems like a huge effort over a little $1K in interest income. I've never filed amended returns, but should I do that or just wait for the IRS to send me bills with interest and penalties due? Please recommend the best path forward.

TurboTax Home & Biz Windows

Best answer by Anonymous_

@Anonymous_ I see at https://sa.www4.irs.gov/ola/payment_options/make_payment that I could make a payment for an amended return for 2019-2022, but those amended returns don't exist yet. So it seems to me that if I am really going to file amended returns I should just go ahead and do it and let TurboTax calculate the penalties and interest due for each year and pay everything when I submit the amended returns? If so, the question for me is "how long does it take to file an amended federal return with TurboTax?"

$2,946.60 is the total interest income. I can total up the amount of interest income for each year from this spreadsheet, which is from https://treasurydirect.gov/BC/SBCPrice and matches the NFCU receipt to the penny:

Serial #	Series	Denom	Issue	Next	Final	Issue	Interest
Date	Accrual	Maturity	Price
NA	EE	$100	Mar-93		Mar-23	$50.00	$114.12
NA	EE	$100	Feb-93		Feb-23	$50.00	$157.36
NA	EE	$100	Jan-93		Jan-23	$50.00	$157.36
NA	EE	$100	Dec-92		Dec-22	$50.00	$157.36
NA	EE	$100	Nov-92		Nov-22	$50.00	$157.36
NA	EE	$100	Oct-92		Oct-22	$50.00	$157.36
NA	EE	$100	Oct-92		Oct-22	$50.00	$157.36
NA	EE	$100	Sep-92		Sep-22	$50.00	$157.36
NA	EE	$100	Aug-92		Aug-22	$50.00	$157.36
NA	EE	$100	Jul-92		Jul-22	$50.00	$157.36
NA	EE	$100	Jun-92		Jun-22	$50.00	$157.36
NA	EE	$100	May-92		May-22	$50.00	$157.36
NA	EE	$100	Feb-92		Feb-22	$50.00	$157.36
NA	EE	$100	Oct-91		Oct-21	$50.00	$157.36
NA	EE	$100	Jun-91		Jun-21	$50.00	$157.36
NA	EE	$100	Feb-91		Feb-21	$50.00	$157.36
NA	EE	$100	Sep-90		Sep-20	$50.00	$157.36
NA	EE	$100	May-90		May-20	$50.00	$157.36
NA	EE	$100	Dec-89		Dec-19	$50.00	$157.36
							$2,946.60

It is most likely better if you let the IRS calculate any interest and penalties due while remitting the additional tax due with the amended returns.

Note that it can take up to 20 weeks to process amended returns.

See https://www.irs.gov/filing/wheres-my-amended-return

Further, you will have to print and mail the returns for those tax years.

You might also want to consider your other income as reported for at least the 2019 tax year as that tax year is now closed and it appears as if the total unreported interest is $157.36.

Anonymous_

Employee

See https://www.treasurydirect.gov/savings-bonds/tax-information-ee-i-bonds

The interest is generally deferred until redemption (holders can make an election for the interest to be taxed each year, however).

nerdindenialAuthor

@Anonymous_ Thanks but your reply doesn't specifically cover the case I asked about (holding the bonds years after their maturation date).

Here is an article that says that I need to file amended returns for 2019-2022 and possibly 2023:

https://fergusonfinancialinc.com/financial-planning/us-savings-bond-tax-trap/

The article does not say if there is any other good ways to proceed other than going through all that work.

Anonymous_

Employee

I believe that to be the case; if you held past the year the bonds matured you would need to amend.

Note that, from your original post, you have one year (2019) for which a timely return would have been filed in 2020 and the limitations period (again, for a timely filed return) would have expired in 2023. Also, the limitations period for the 2020 tax year will expire in just a few months (April, 2024) assuming you filed a timely return (in April of 2021). Just a note and not to say you shouldn't amend those returns.

Tscurlo2019

What I don't understand is this. If all the older savings bonds have matured.... they are not gaining any more interest. Is that a Correct Statement?

So if the OP held the old bonds for, lets says, 8 years.... he isn't gaining anything, until he cashes the bonds in. At which point in time... I can see reporting all of them on your tax return in the year that they were all Cashed. (2024)

I don't see why you have to go back and make amended returns for the years that they matured. He hasn't gained anymore interest and He didn't take payment of the bonds until January 4, 2024. Which he should be able to report by April 2025.

Anonymous_

Employee

No more interest will be earned, correct.

However, you going to get a 1099-INT that will reflect the interest in the year the bond reached its final maturity (so the IRS knows when the interest should have been reported).