Comments on: Penalties for not cashing mature savings bonds http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/ Wed, 08 Feb 2012 21:37:57 +0000 http://wordpress.org/?v=2.0.4 by: Tom Adams http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-72431 Mon, 31 May 2010 12:44:10 +0000 http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-72431 Diana - The bank will not penalize her when she cashes them. She will receive a 1099-INT by the following January listing the amount of interest she earned. If the 1099-INT is mistakenly dated 2010 by the bank, then there will be no penalty. On the other hand, if the bank knows the rules, the 1099-INT will be dated for the year the bonds matured, and in that case the IRS will be looking for amended tax returns from your aunt for those years. Tom Adams Diana - The bank will not penalize her when she cashes them. She will receive a 1099-INT by the following January listing the amount of interest she earned. If the 1099-INT is mistakenly dated 2010 by the bank, then there will be no penalty.

On the other hand, if the bank knows the rules, the 1099-INT will be dated for the year the bonds matured, and in that case the IRS will be looking for amended tax returns from your aunt for those years.

Tom Adams

]]> by: Diana Kroells http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-72043 Fri, 28 May 2010 23:49:41 +0000 http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-72043 I recently found out that my aunt is holding about 25 E bonds that have matured from 2005 to 2009. She did not need the money and did not know she needed to cash them in the year they matured. If she takes them to the bank to cash them in, how will she know if she will get a penalty for not claiming them in the year they were matured. Will she be notified by the Federal Reserve or the IRS? Diana I recently found out that my aunt is holding about 25 E bonds that have matured from 2005 to 2009. She did not need the money and did not know she needed to cash them in the year they matured. If she takes them to the bank to cash them in, how will she know if she will get a penalty for not claiming them in the year they were matured. Will she be notified by the Federal Reserve or the IRS?
Diana

]]> by: Tom Adams http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-68764 Wed, 28 Apr 2010 15:05:32 +0000 http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-68764 Natalie - the information you need to replace the lost bonds is <a href="http://www.savings-bond-advisor.com/how-to-recover-lost-savings-bonds/" rel="nofollow">here</a>. Bonds issued in 1982 through 2000 are all still paying interest, so there's no penalty involved here. Tom Adams Natalie - the information you need to replace the lost bonds is here. Bonds issued in 1982 through 2000 are all still paying interest, so there's no penalty involved here.

Tom Adams

]]> by: Natalie http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-68617 Tue, 27 Apr 2010 21:06:53 +0000 http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-68617 My mom bought savings bonds for me through automatic debit from each paycheck for about 18 years (1982-2000). We lost the majority of them when our house was demolished years ago. Only about 20 or so are left and have a face value of $200. Can I give the Treasury the identifying numbers of the few I do have and request replacements for the lost/destroyed bonds by giving them this range? Realistically, should I be hopeful they will be able to replace 400+ bonds? Also is the tax penalty we should expect to pay on bonds cashed after maturity directly related to my/her tax bracket? Thank you in advance for any advice, as I am painfully new to finances. My mom bought savings bonds for me through automatic debit from each paycheck for about 18 years (1982-2000). We lost the majority of them when our house was demolished years ago. Only about 20 or so are left and have a face value of $200. Can I give the Treasury the identifying numbers of the few I do have and request replacements for the lost/destroyed bonds by giving them this range? Realistically, should I be hopeful they will be able to replace 400+ bonds? Also is the tax penalty we should expect to pay on bonds cashed after maturity directly related to my/her tax bracket?

Thank you in advance for any advice, as I am painfully new to finances.

]]> by: Tom Adams http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-68612 Tue, 27 Apr 2010 20:43:31 +0000 http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-68612 Brittany - the bonds are still valuable and can be cashed by your great-grandfather's legal heirs. Depending on how his estate was settled, your mother and the other heirs may be able to use <a href="http://www.treasurydirect.gov/forms/sav5336.pdf" rel="nofollow">this form</a>. Tom Adams Brittany - the bonds are still valuable and can be cashed by your great-grandfather's legal heirs. Depending on how his estate was settled, your mother and the other heirs may be able to use this form.

Tom Adams

]]> by: Brittany http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-68563 Tue, 27 Apr 2010 15:40:38 +0000 http://www.savings-bond-advisor.com/penalties-for-not-cashing-mature-savings-bonds/#comment-68563 My mom has bonds that her mother has left behind, but they are in her grandfather's name. I am pretty sure the bonds are way past it's maturity date. Is there anyway to get the name switched over to my mom's name, because both are deceased? Would it even be beneficial for her to cash these bonds? Or are the bonds just regular colorful paper now that is worth nothing? Thank you for your time. My mom has bonds that her mother has left behind, but they are in her grandfather's name. I am pretty sure the bonds are way past it's maturity date. Is there anyway to get the name switched over to my mom's name, because both are deceased? Would it even be beneficial for her to cash these bonds? Or are the bonds just regular colorful paper now that is worth nothing? Thank you for your time.

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