I have EE savings bonds that matured in the years 2013 and 2014. You mentioned in your column in today’s Baltimore Sun that taxes on these mature bonds must be paid during the maturity year. Recently, I realized that I did not report the mature bonds and am wondering if there is a penalty if I report them this year.
Terry Says: You could face a penalty — but if it was only two or three years ago, it is probably not too late to file an amended return and pay the tax without penalty. Consult your tax advisor. If it was a small amount it may not be worth the cost of re-filing – and you could report it on this year’s return and see if a penalty is assessed. (You’d think the IRS has a lot better things to do!)