"Will the IRS know who I nomineed EE bond interest to,as you cannot put in their SS#?"
No. There's no provision for that.
"Do you just change box 3 to reflect the total amount on the recipients return?
"
No. You simply enter the amount you've that shouldn't be included in your income tax return in the "nominee" questions that come up after you enter the 1099-INT. That amount will be shown as a subtraction on your Schedule B.
Tom Young
