Do I need to file amended return?

[Insagn]

I cashed five EE savings bonds earlier this year and expect to receive a 1099-INT for the earned interest. However all of these bonds matured in either 2012 to 2020. Do I need to file an amended return for these years and what, if any penalties might I expect?

[xmasbaby0]

No you do not need to amend your returns for the previous years.  You received the interest in tax year 2023, so that is the year in which you enter the interest.   It goes on your 2023 tax return.

[Insagn]

That was the answer that I was hoping for, but I am still a little concerned since the IRS says that I needed to pay taxes when I cashed them or when they matured, whichever occurs first. All of mine matured before I cashed them.

[NCperson]

@Insagn please post the link where the IRS states that.  I can't find it.

Here is what the US Treasury states about EE bond....and the IRS is part of the Treasury....

https://www.treasurydirect.gov/savings-bonds/tax-information-ee-i-bonds/

[Insagn]

I see where this IRS topic says that I will receive a 1099-int when my bonds mature or I cash them. All of my bonds have matured prior to 2023, but I have not received a 1099. I expect that I will this year and planned to include the interest in my tax return for 2023. Thank you for answereing my questions.

[VolvoGirl]

I'm with the op.  See IRS Publication 550 starting on page 7 for Savings Bond Interest

https://www.irs.gov/pub/irs-pdf/p550.pdf

Reporting options for cash method taxpayers. If you use the cash method of reporting income, you can report the interest on series EE, series E, and series I bonds in either of the following ways.

Method 1. Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year in which they mature. (However, see Savings bonds traded , later.)

Note. Series E bonds issued in 1980 matured in 2010. If you have used method 1, you generally must report the interest on these bonds on your 2010 return.

[Insagn]

I redeemed several matured EE savings bonds in early 2023 and have not received a 1099-int from the Treasury and they have no record of my redeeming these bonds (I mailed them to the Treasury and they sent me a check). Should I try asking the IRS for an opinion on what to do. I am willing to file amended returns for the 2012 and 2020 tax years when these savings bonds matured, however I do not have a copy of my 2012 return and the IRS can only provide a copy of returns up to ten years back. The IRS told me that it might take six months to get a reply so I guess that I could file my 2023 return and not include the interest income from redeeming the bonds and see what the IRS has to say. I could still file an amended return if they come back and say this needs to be done. Will appreciate your thoughts on what I should do.

[MonikaK1]

The statute of limitations for the IRS to assess any additional tax for tax year 2012 expired in 2016 unless the statute for your return was extended for some reason (such as an audit still in process). So, it is too late to amend that return. For tax year 2020, the regular statute of limitations for assessment expires on April 15, 2024, so you could still amend that return to report interest on bonds that matured in that year.

It is possible that Treasury didn't issue you 1099's for the redemption of these bonds in 2023 because they had matured in prior tax years.

As @VolvoGirl noted, interest on matured bonds is taxable in the year they mature, if not reported annually, or at the time redeemed if before they matured. From IRS Publication 550":

Reporting options for cash method taxpayers. 

If you use the cash method of reporting income, you can report the interest on Series EE, Series E, and Series I bonds in either of the following ways. 

1. Method 1. Postpone reporting the interest until the earlier of the year you cash or dispose of the bonds or the year in which they mature. (However, see Savings bonds traded, later.) Note. Series EE bonds issued in 1992 matured in 2022. If you have used method 1, you generally must report the interest on these bonds on your 2022 return. The last Series E bonds were issued in 1980 and matured in 2010. If you used method 1, you generally should have reported the interest on these bonds on your 2010 return. 

2. Method 2. Choose to report the increase in redemption value as interest each year

See this TurboTax tips article for more information on investment bonds.