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

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."

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?

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.

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?