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No the bank isn't wrong.  They don't know when your bonds matured, just when they paid you the interest.  It's up to you to report it right.   By the way be sure to enter the interest in 1099-INT box 3 so it's properly subtracted from the state return.

 

My old notes say.......

When your Series E Bond matures you have to report the interest even if you don't cash it in. It took a while of searching but I did find a line in IRS pub 550 that said report at maturity. So it sounds like you have to report it. If you have to pay the tax and since it doesn't accrue any more interest, you might as well cash them in and put the money somewhere else or I think you can trade it in for a H bond that pays you the interest every 6 months.

See IRS pub. 550 page 10 for 10 U.S. Savings Bonds - Reporting options for cash method taxpayers 

 http://www.irs.gov/pub/irs-pdf/p550.pdf

 

It says…..
Reporting options for cash method taxpayers. If you use the cash method of reporting income, you can report the interest on series EE, series E, and series I bonds in either of the following ways.

 

Method 1. Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year in which they mature. Note. Series E bonds issued in 1980 matured in 2010. If you have used method 1, you generally must report the interest on these bonds on your 2010 return.