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Old 06-20-2011, 01:16 PM
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1099 int reported wrong

In 2009 I cashed in several series e savings bonds that my Mother had given me as gifts many years ago. The bank correctly sent me a 1099 int for the interest amount, which I claimed on my 2009 1040 and paid taxes on. Last week my Mom got a notice from the irs that she owes taxes and penalties for not reporting that interest. Apparently the bank incorrectly reported the interest to the irs under her ssn and not mine. So where do I begin to unwind this mess....?



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Old 06-21-2011, 08:13 AM
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“ Apparently the bank incorrectly reported the interest to the irs under her ssn and not mine. So where do I begin to unwind this mess....?”---> Paper Series EE Savings Bonds are often used as gifts. A hidden reason for their popularity is that Series EE bonds are purchased at half of face value. When your mother purchases the gift bond, she has to provide a Social Security Number, but it can be either your mother’s or yours, a recipient's. The Social Security Number your mother provides isn't used for tax purposes; the social security number printed on the bond is only used for tracking purposes in case the bond is lost. It has no effect on taxes. With E, EE, and I bonds, the 1099-INT tax form that reports income to the IRS will have the social security number of whoever cashes the bond. I don’t think that this is your case, however, if your mother cashes the bond, then she will get the 1099-INT. It's the SSN on the 1099-Int that is important. You just need to contact a bank officer, a paying institution( as you are required to provide identification that matches your name on the savings bond) and an IRS agent in your local area.



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Old 06-21-2011, 11:32 AM
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>>>> It's the SSN on the 1099-Int that is important. You just need to contact a bank officer, a paying institution( as you are required to provide identification that matches your name on the savings bond) and an IRS agent in your local area.[/quote]

Thanks for the quick response. I dug out the 1099-int I received, and sure enough, it has my name but her SSN on it, so that's the basis for the error. If I had noticed that when I got it, it could have been corrected. I've drafted a letter with supporting documentation to respond to the IRS CP2000 notice.....



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