Quote Originally Posted by arlo View Post
Client Received a statement from the Treasury Department showing ACCRUED INTEREST. Is this to reported as income. Thanks in advance
What kind of "statement" ??
1099-INT ? 1099-OID ? 1099-B ?

Accrued interest is usually related to purchases/sales of a bond between interest payout dates. It can be a + or a - number based on the relevant facts.

Interest on US government obligations is usually taxable to the IRS and exempt income (adjustment) to a state.

Your tax software should have an area where you enter "US" income and a separate adjustment area which would handle any accrued interest issues.