- quote -

My parents died in 1994. I had in my possession copies of
their last 20 or so tax returns until last month, when I
finally decided I no longer needed them and shredded them.

I am now waiting for the inevitable notice from someone that
can only be resolved with copies of the returns I just
shredded.

--
D.F. Manno
dfm2a3l0t2[at]spymac.com
"The work goes on, the cause endures, the hope still lives and the dream
will never die."

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Actually, I still have some of my father's returns:
1956-1963 and 1980-1990, plus his 706. He died in 1990. I
may have others that I simply haven't found yet as there's a
large amount of papers I have yet to go through even 15
years later.

As I didn't join the IRS until the mid-1980's, having a
"revenuer" as a son wasn't a factor. Is that enough
real-world for you?

Moderator: Will the next person trim this big time.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Harlan Lunsford <lunstax[at]belllsouth.net> wrote:

- quote -

True - but they _should_ only have to find the most recent
return. As you know, once you start to accrue interest on
savings bonds you cannot stop (for those bonds). So, if the
most recent tax return has an accrual entry for a particular
set of bonds, you should be able to assume that interest on
those bonds was accrued for previous years also, and no
other currently-owned savings bonds had interest accrued.

--
Vic Roberts
Replace xxx with vdr in e-mail address.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

While I understand what you're saying and the reasons
therefor, can you imagine how many people actually save
their tax returns? And how many children have copies of
parents' tax returns after their demise?

(Welcome to the real world, D!) grin

ChEAr$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

D. Stussy wrote:
- quote -

Even if (a) mother had been electing to report interest only
when she would cash said bonds? and (b) if no estate
return were even required to have been filed?

ChEAr$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

MB_ wrote:
- quote -

Penalties go against the ORIGINAL return. An amended return
can only be an amendment if an original was filed. Interest
is not a penalty.

- quote -

The interest 1964-1974 should have been reported in some way
(income and/or estate tax) previously.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

That does NOT mean that your mother didn't report the
interest as it accrued when she was alive. You need to go
back to her income tax returns and find out.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

I believe there was some kind of return filed (I think a
final tax return). This was in 1974 (when my mother passed
away).

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

I believe there was some kind of return filed (I think a
final tax return). This was in 1974 (when my mother passed
away).

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Interesting. If the estate were not large enough to require
an estate return, there would be no reporting on paper.
However, the value as OF the applicable date would still be
fixed and therefore usuable as basis I should think.

So, the minute I hear somebody (related to a client) died,
and I'm asked by client, I say to immediately do the
valuations, even if entire estate is less than 1.5 million$.

ChEAr$,
Harlan Lunsford

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Thanks. That was my impression and that's how I proceeded.

The bonds were just discovered recently, so obviously it was
not reported as part of the estate.

Mel

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Look at IRS Publication 559 for income from inherited saving
bonds. If the executor reported the interest on the date of
death on the final tax return, you only owe from the date of
death. If you can't prove that, you owe the entire amount of
interest.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Mr. Stussy:

Thanks for responding. You said:

- quote -

Since it is after April 15, I thought there would be
additional interest, penalties, etc. if I file the ammended
return. Is that not the case??

I would certainly rather file it in 2005 (for a variety of
reasons). Do you know if the 1099-INT form will say 2005
since I got the funds in 2005. Incidentally, in order to get
the funds, I had to send in form 1048.pdf. I assumed the
1099-INT would be attached to the check, but it wasn't. Does
the gov't send me a separate 1099-INT for those bonds??

One last question. The bonds that were cashed in were in my
mother's name, POD my name. The bonds were purchased in
1964. My mother passed away in 1974. I assumed that I owed
the entire interest. Are you saying that even in this case I
only owed the interest from 1974 to 2004 (which would be the
bulk of the interest anyway)?

Thanks for your help.

Mel

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

MB_ wrote:

- quote -

Since you didn't know about them, simply report the interest
now as you will be cashing them in (perhaps to reinvest the
proceeds in another investment). There's no reason not to
since they won't accrue any more interest.

- quote -

Administratively, I wouldn't bother unless reporting the
interest in 2004 provides a tax savings over 2005 reporting.
However, you are technically correct that it should be 2004
income. I don't understand your comments regarding being
penalized for late filing on an AMENDED return.

- quote -

If she had an estate tax, then you may have an estate tax
deduction for this "income with respect to a decedent."
Regardless, you are only responsible for the income in the
past 20 years (assuming you are saying that's when she
died).

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

I have just found out there are some "E" bonds in my name
(unbeknownst to me previously; they apparently were
purchased by my mother who passed away over 30 years ago).

Anyway, these bonds were purchased so many years ago that
they are beyond final maturity. I am not sure how to handle
this tax-wise as the law is clear on this: the latest year
to claim income on this is the year in which they reach
final maturity.

Now, some reached final maturity in 2004. So, I assume I
file an ammended return but then I'll have to take a hit due
to late filing and underwithholding. Is there any way to
avoid or minimize that at this point??

Other bonds reached final maturity as long as 20 years ago,
but they are in my mother's name. I am her only son. So,
what are the tax implications for this (those were small
bonds and the total interest will be about $400 for both of
them combined).

Mel

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->