HOW DO i REPORT ACCRUED INTEREST PAID. hOW DO i REPORT BOND PREMIUM COVERED AMOUNT?

[lowtidelodge]

Having trouble determining how to report "accrued interest paid" and "bond premium covered"  Also "bond premium noncovered lots".  Need and appreciate any7 help.

PM

[skinnypaulm]

This was the answer I received from  TurboTaxKerriP , CPA when I asked a similar question. "If this is reporting Interest income on an instrument like a bond that had accrued interest at the time you purchased, then yes, you would reduce your interest income by the accrued interest at your purchase date."

[tinkerbellwb]

Simply reducing interest income reported on the 1099-INT exposes you to audit risk since the amount reported does not tie to the 1099. Is there a way to report accrued interest separately?

[JamesG1 · Accepted solution]

Report the total interest received and adjust the amount down by following these directions.

• Enter the the total interest from the 1099-Int, then select Continue.
• Under Do any of these uncommon situations apply?, click on I need to adjust the interest reported on my form.
• Click on Continue.
• Enter the adjustment amount and under the reason select My accrued interest is included in this 1099-Int.

See this help.

[vinchang]

I have same concern. Accrued interest paid is in "not reported to IRS" section, that means IRS does not have the records. how do we prove it in the tax returns?