Savings Bond

I cashed a US Savings bond in 2019. In 2020 I was advised by the Treasury department that the bond had been cancelled and reissued and they demanded a repayment of the funds paid in 2019. I then cashed the replacement bond (to the one that had been canceled and reissued) and used those funds to repay the Treasury department for funds paid on the cancelled bond. My problem is that I received a 1099 from my bank showing receipts from the cancelled bond (which has now been repaid). How do I handle that situation on my 2019 tax return? I am expecting a 1099 for the replacement bond for tax year 2020 and I do not want to pay taxes twice on that bond sale.

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