# Wrong amount on 1099



## debodun (Jan 24, 2020)

I cashed two paper U.S. Savings Bonds in December 2019 at the local bank. When I received my 1099 from the bank, there was a lot more in box 3 than I had expected by their value on Treasury Direct. I called the bank and the agent said that according to their records, I cashed four bonds on that day. She also stated that the discrepancy it wasn't their problem and I'd have to take it up with the Treasury Department. 

The teller I dealt with didn't seem to know what to do with paper bonds, even the bank manager didn't. They said to turn over the bonds to them and when they figured it out, they would credit my account, which apparently they did (my December statement showed a deposit on December 20th in the amount I know was correct for the 2 bonds). Other than that, I have no receipts or anything else in writing except the bond's serial numbers. The bank did not offer to give me a receipt or any other proof, which I thought odd. 

 I'm not sure what to do now, it's my word against the bank's. Any suggestions on how to proceed?


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## Keesha (Jan 24, 2020)

Do online banking so you have the proof. 
Get with the program Deb. 
Kidding. I don’t know what to do about the bonds. I Think you could fax the originals to your bank before actually depositing them so there’s verification but not sure if that’s doable where you are. 

Good luck otherwise.


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## gennie (Jan 24, 2020)

Do you make copies of your important papers before you hand over an original.  If not, maybe you should consider doing it.


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## Knight (Jan 24, 2020)

You cashed two bonds then turned over two bonds.  The two returned are credited so have you done as was asked of you to check with the treasury dept.? 



With the return & serial numbers you should have no problem disputing the wrong amount on your 1099


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## debodun (Jan 24, 2020)

Knight said:


> You cashed two bonds then turned over two bonds.  The two returned are credited so have you done as was asked of you to check with the treasury dept?



I sent them a message on their Web site. I received an email saying it was received. I am awaiting a reply.


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## Butterfly (Jan 24, 2020)

debodun said:


> I cashed two paper U.S. Savings Bonds in December 2019 at the local bank. When I received my 1099 from the bank, there was a lot more in box 3 than I had expected by their value on Treasury Direct. I called the bank and the agent said that according to their records, I cashed four bonds on that day. She also stated that the discrepancy it wasn't their problem and I'd have to take it up with the Treasury Department.
> 
> The teller I dealt with didn't seem to know what to do with paper bonds, even the bank manager didn't. *They said to turn over the bonds to them and when they figured it out, they would credit my account, which apparently they did (my December statement showed a deposit on December 20th in the amount I know was correct for the 2 bonds). *Other than that, I have no receipts or anything else in writing except the bond's serial numbers. The bank did not offer to give me a receipt or any other proof, which I thought odd.
> 
> I'm not sure what to do now, it's my word against the bank's. Any suggestions on how to proceed?



First off, I would ask the bank's manager (not the teller) to provide you with some kind of documentation of where that deposit came from.  They must have something to back that up -- I mean if you or I deposit a check, we have to have a deposit slip so the bank must have some sort of paper trail (or electronic trail). 

So, if I understand you correctly, the bank cashed out the two bonds -- the ones you didn't originally cash -- and added that money to your account?  Did you tell them to do that?  If so, and they have now done that, what's the problem (except that the cashing of the second 2 bonds is now in tax year 2020, and the bank owes you a revised 2019 1099 for the two that were actually cashed in 2019.

If I were you, instead of trying to get info from the teller, I would have a discussion with the bank manager.  If this a local bank, or a national one?


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## Knight (Jan 24, 2020)

> The teller I dealt with didn't seem to know what to do with paper bonds, even the bank manager didn't. They said to turn over the bonds to them and when they figured it out, they would credit my account, which apparently they did (my December statement showed a deposit on December 20th in the amount I know was correct for the 2 bonds).



So in reality you did cash 4 bonds since you turned over the bonds to the bank and they deposited the money from those two into your account.

Two you have the money for, two cashed and into your account.

Realistically you cashed 4 bonds. If you held  the two that you turned over to the bank you could prove you only cashed two.


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## StarSong (Jan 25, 2020)

The way I read the original post, there were only two bonds to begin with.

If you have a copy of the bonds - or even just their numbers, denominations, and issue plus redemption dates - it will be a relatively simple process to go to the treasury department website and reconstruct the interest.  

Print it out, bring that to the bank along with the 1099 and your banking information. With that, they should square away the error. I'm assuming, of course, that the 1099 isn't reflecting additional interest earned on your other accounts with that bank.


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## Aunt Bea (Jan 25, 2020)

I guess I'm lazy but I would just file my taxes and pay the additional amount owed.


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## StarSong (Jan 25, 2020)

Aunt Bea said:


> I guess I'm lazy but I would just file my taxes and pay the additional amount owed.


Good point - how much interest are you talking about, Deb?


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## debodun (Jan 25, 2020)

StarSong said:


> Good point - how much interest are you talking about, Deb?


There's over a $200 discrepancy. I received $414 for the bonds and the 1099 has $630 in box 3.

I do have the serial numbers of the two bonds.

What is the confusion? I only had 2 paper bonds which I instructed the teller to credit to my bank account when I turned them in.


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## Knight (Jan 25, 2020)

I read it as 4 bonds. The two you cashed & the two you turned over to the bank to credit your account. 

Quote
They said to turn over the bonds to them and when they figured it out, they would credit my account, which apparently they did (my December statement showed a deposit on December 20th in the amount I know was correct for the 2 bonds)


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## debodun (Jan 25, 2020)

I cashed in (redeemed) 2 bonds and asked them to credit the amount of both to my account - only 2 bonds.


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## Knight (Jan 25, 2020)

You began with 

Quote
I cashed two paper U.S. Savings Bonds in December 2019 at the local bank.


Then 

Quote
They said to turn over the bonds to them and when they figured it out, they would credit my account, which apparently they did (my December statement showed a deposit on December 20th in the amount I know was correct for the 2 bonds)

If you cashed two bonds then where did the bonds you turned over to them come from?


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## The Rodent (Jan 25, 2020)

Is it possible you cashed another bond earlier in 2019? The 1099 would reflect interest on all bonds cashed in 2019. The interest amount seems about right for a third bond.
I also cashed 2 bonds in 2019 with a total interest of $236 on the 1099-INT


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## Butterfly (Jan 25, 2020)

So, deb, is the problem that you can't figure out where the additional $$ on your 1099 came from?  Does that number not correlate with the amount deposited in your account?

If the 1099 is from the bank, the bank manager should be able to give you a breakdown of exactly where that figure came from.  If they generated the 1099, they have to have the breakdown -- how else could they compute the amount?


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## debodun (Jan 25, 2020)

Knight said:


> You began with
> 
> Quote
> I cashed two paper U.S. Savings Bonds in December 2019 at the local bank.
> ...


That are the same bonds.


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## Knight (Jan 25, 2020)

debodun said:


> That are the same bonds.


That still doesn't explain the two bonds you turned over to the bank for deposit. You posted that you cashed two bonds & turned over two bonds for them to put into your account.

If I cash two bonds I have the money in my hand. Then if I turn over two bonds for the bank to put into my account I have cash in hand & bonds that the bank will close out & deposit into my account.

Maybe if you left it at cashing two bonds & putting the proceeds of those two bonds into your account then getting a 1099 with the additional amount that would be more understandable for me.


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## debodun (Jan 25, 2020)

I guess I cannot make you understand that I had just 2 bonds. I cashed them in (redeemed them) and told the bank to deposit that amount in my account. *JUST 2 BONDS were involved*.

1) I got the 2 bonds out of my safe deposit box.
2) I took them to the teller's window with the intent of redeeming them and having that amount deposited in my bank account.
3) the teller didn't know the procedure for redeeming the bonds.
4) he called the manager to the window.
5) the manager also did not know how to handle paper bonds and said to sign them and when they figured it out, the bond values would be deposited in my account.
6) I signed the 2 bonds and left the bank.
7) when I received my account statement, the correct value of the bonds ($414) was credited to my account.
8) when I received my 1099 from that bank, $630 was in box 3 when I expected only the $414.


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## Knight (Jan 25, 2020)

debodun said:


> I guess I cannot make you understand that I had just 2 bonds. I cashed them in (redeemed them) and told the bank to deposit that amount in my account. *JUST 2 BONDS were involved*.
> 
> 1) I got the 2 bonds out of my safe deposit box.
> 2) I took them to the teller's window with the intent of redeeming them and having that amount deposited in my bank account.
> ...


That explanation isn't what your 1st post portrayed.

From your 1st post

Quote
I CASHED TWO PAPER U. S. SAVINGS BONDS  in December 2019 at the local bank.I called the bank and the agent said that according to their records, I cashed four bonds on that day.

Quote
The teller I dealt with didn't seem to know what to do with paper bonds, even the bank manager didn't. They said to TURN OVER THE BONDS TO THEM  and when they figured it out, they would credit my account, which apparently they did (my December statement showed a deposit on December 20th in the amount I know was correct for the 2 bonds).

Years ago we had some U. S. savings bonds. When we CASHED them we had the money in our hands.  I could understand the logic of the bank records showing you cashed 4 bonds. The two you CASHED & the two that were later credited to your account. Obviously that didn't happen but it looks like what took place according to how you explained it in your 1st. post

Why you would sign the bonds & not take the cash but instead leave signed bonds for someone else to be able to take your money makes no sense to me.  If it were me I'd hold onto those signed bonds until the bank manager learned how to process them. You sure do trust more than I do.


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## StarSong (Jan 26, 2020)

Please let it go, @Knight.  (For the record, @debodun, I understood from your first post that there were only 2 bonds involved.)  

The question remains, did you have any other accounts or transactions at this bank that might have yielded interest over the past year?


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## OneEyedDiva (Jan 26, 2020)

In order for bonds to be cashed, they have to be signed. My question is the same as Knight's. Why would you trust someone to just take your bonds and do whatever with them with no receipt to show? Also, StarSong asked a good question...could any other bank transaction have accounted for the extra money on your 1099..that you may have forgotten about?  Maybe it's time to ask yourself...why do these kinds of things keep happening to me?! And make changes accordingly.


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## RadishRose (Jan 26, 2020)

Why aren't you calling the bank for help, or the IRS?

Find out what your balance was *before* you took the bonds to the bank.


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## debodun (Jan 26, 2020)

I did call the bank's main office and was informed that I'd have to take it up with the Treasury Department since the bank only reports what that are told. I have sent the TD a communication through their Web site and am awaiting a reply.


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## Knight (Jan 26, 2020)

StarSong said:


> Please let it go, @Knight.  (For the record, @debodun, I understood from your first post that there were only 2 bonds involved.)
> 
> The question remains, did you have any other accounts or transactions at this bank that might have yielded interest over the past year?


Maybe by me continuing debodun will think about how she deals with her bank and how what seems simple can get complicated. Note she took the time to outline what she did which was different than her original post. That included signing the bonds and leaving them with the bank. She could have ended up with zero if the teller or any other bank employee cashed her signed bonds.

But take this as letting it go.


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## debodun (Jan 28, 2020)

This is the Treasury Department reply to my inquiry:

_When bonds are redeemed at the financial institution they are the office that will be able to handle your discrepancy. Please call the financial institution that redeemed your bonds and they should have records of your bonds that you redeemed. _

The banks says to deal with the Treasury. Each is fobbing it off on the other. Who do I believe?
_
_


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## Knight (Jan 28, 2020)

debodun said:


> This is the Treasury Department reply to my inquiry:
> 
> _When bonds are redeemed at the financial institution they are the office that will be able to handle your discrepancy. Please call the financial institution that redeemed your bonds and they should have records of your bonds that you redeemed. _
> 
> The banks says to deal with the Treasury. Each is fobbing it off on the other. Who do I believe?


Since you turned over signed bonds to the bank for deposit into your account & trusted them to do that. You need to have a face to face conversation with the bank manager. It's not about belief it's about confirming for yourself what took place preferably in writing once you are satisfied with what took place.


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## debodun (Jan 31, 2020)

After not hearing back from the bank's main office by telephone contact, I paid a personal visit to the local branch. The manager was very contrite and apologetic, but could not explain the discrepancy on my 1099 and promised to look into it. 

What gets me is the bank agent said it wasn't the bank's problem and I'd have to contact the Treasury Dept since the bank only reports what the Treasury tells them. When I called the TD, they said I'd have to straighten it out with the bank. Typical run around....


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## Butterfly (Jan 31, 2020)

I believe it is the bank's problem, since they are the ones who issued the 1099.  If they just report based on what Treasury told them, then they must have some kind of communication from Treasury telling them what to report, and surely someone in their accounting department must be responsible for checking to see if what Treasury reported to them matches what the bank deposited in your account.  AND I am certain the bank has to keep backup documents to justify what their 1099 says.

Back when I issued 1099s I sure had to keep documentation to justify the amounts reported.


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