Sunday, December 4, 2011

On 12/30/06 I cashed some savings bonds. The transaction was credited for 1/2/07. I wanted for '06 tax purpose

Was this a mistake by the bank? Can I have the transaction date be Dec 30 2006 since this is the day I cashed them?|||You are pretty much at the mercy of the 1099 information that you receive from the bank since they file that with the IRS. If you were to put the savings bond transaction on your 2006 return the IRS would happily accept what ever tax you may owe. In 2007 the IRS will receive a copy of the 1099 regarding the savings bonds and want to know why you have not paid them the tax related to those bonds. My experience would suggest that they would attempt to collect tax on the total value of the bonds not just the interest earned. All of this would not take place until after September of 2007 since they do not reconcile 2007 returns with 2007 income forms such as the 1099s.This can become a mess and take several contacts with the IRS and perhaps amendments to both your 2006 and 2007 returns before it is fixed. The bank may not be able to fix the information as it will not be reported until the 1-2-2007 date. I would strongly suggest that you accept the 1-2-2007 date and avoid the problems.|||Generally the bank will need at least 24 hours to update their records, thus the date reflected on the transaction record is correct. I don't think there is much the bank can do although you can try and visit the bank and request that they amend the date to that of 30 Dec 2006.|||Saturday is not a business day for ANY financial institution in the US. Any transactions processed after the cutoff time on Friday are treated as if they happened on the first business day of the following week. Ask a CPA if you can still claim the sale in 2006 for tax purposes. The bank did not make a mistake and can't day ANY transaction Saturday.

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