Sold a replacement Saving Bond by mistake - sent Treasury reimbursement. 1099-INT show full interest earned on sale of bond. How do you show the return to Gov of mistake?

[GeorgeM777]

It appears you need to contact the Agency/Department that issued you the 1099-INT, and request a corrected 1099-INT.  The 1099-INT you have which as you claim contains an incorrect amount of interest, is also the 1099-INT on file with the IRS.  Consequently, you need to request a corrected form.  

[fanfare]

You sold a bond but now you didn't sell it and still own it ?

You paid back some interest to complete this reversal ?

You can nominee back the interest that you paid back.

It will show as an amount subtracted from the total interest you received on Schedule B Line 1.