underated66 asked:
I cashed two savings bonds both $50 and got 216.16 in return. i was wandering what would happen if i forget to report this at tax time.
Jerrold
I cashed two savings bonds both $50 and got 216.16 in return. i was wandering what would happen if i forget to report this at tax time.
Jerrold
April 9th, 2009 at 8:05 am
For this dont forget youll get 1099int and interest may take them so will be after you will not be after you.
April 9th, 2009 at 10:00 am
The IRS is notified of the interest that you are paid. In about 18 months or so, they’ll catch the “error” when they run the information matching against your return. That will trigger a CP2000 letter, advising you of the error and calculating the tax and any penalties and interest. The tax will depend upon your total income, but assuming that you’re in the 15% tax bracket, the tax would be around $25 plus about $4.50 or so in penalties and interest.