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Did you file your tax returns 10 years ago, when the bonds matured?
Even though you did not claim the interest, did you actually file a tax return
yes I did
Well, then the statute of limitations has ran and the IRS cannot assess tax on you for that, unless they can prove that you fraudulently did not claim the income
and this sounds like a simple oversight.
I also have some that have matured within the last 6 years , they were all locked in a safe deposit box that I forgot about and I am also overseas so cant get to it
For those, what you do is you file amended returns and pay the tax and penalties on the unreported amount
thought the farthest back one could go is 3 years with amended returns
well, that's true in that you can't get a refund after 3 years but you can amend up to 6 years
Especially if you owe additional tax
so the original question was can the tax and penalties for 6 years be more than the value of the bond, ie. is it better to just not cash them in
No, it won't be greater than the value of the bonds
interest is very low these days
ok thank you
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