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|Subject: taxable reported on 1099 as nontaxable||Date: 2/28/2014 1:27 PM|
|Author: blacktreechaser||Number: 35211 of 35571|
For muni bond holders......I don't know if you'll ever see this or not with any of your muni bonds, but with some recent decisions, you might......
I've got some muni bonds for a health care facility. In 2012, there was a "determination of taxability", or something like that, that said interest from this bond was taxable. And some adjustments were made.
Anyways, on my 2013 1099-INT, interest from this bond is listed as Tax Exempt. On line 10, it lists the CUSIP #. I assume IRS will see the CUSIP number.
So, I called up the bond issuer, and they said the interest is taxable, there have been no changes since the 2012 decision.
So, its tempting, but I'll probably include it as taxable, let my broker know, and pay the extra $15 or $20 that it will jack up my taxes.
A very long time ago I had some bonds for a state housing project in Alaska, that were taxable. The bond even had state of Alaska in the bond name. I thought if IRS ever even looked at my return, they would see State of Alaska in the name and determine the interest was tax exempt. So I took a chance and treated that interest as tax exempt. That didn't work out too well for me. Actually, I did OK...I pleaded ignorance, and got the penalty forgiven, just paid a little extra on the tax due.
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