I have a noncovered tax-exempt municiplal bond where the bond premium amortization (BPA) is not shown on 1011-INT, line 13 but is reported as supplemental information elsewhere in my Edward Jones statement. Edward Jones does keep track of the reduced basis of these bonds and shows my basis on my statements. My question is what do I need to do with this BPA supplemental info? Do I need to reduce my tax exempt interest that was reported on line 8 of the 1099-INT by the BPA? Do I just ignore the supplemental BPA info since EJ has been keeping track of bond basis and reports it on the 1099-B when the bond is sold? I don't understand why I should reduce my tax-exempt interest by the BPA amount if it's not taxed anyway. The IRS instructions are unclear as how to treat these noncovered tax-exempt bonds BPA.
