Taxpayer has interest on Treasury obligations reported in box 3 of 1099-INT. No entry in box 12, bond premium on treasury obligations. However, in details of the 1099 Consolidated, financial institution shows “noncovered bond premium on treasury obligations” with a note that “these amounts are not reported to IRS but may affect your tax return.”
I know that covered bond premiums listed in box 12 will reduce the interest noted in box 3. How does noncovered bond premiums of treasury obligations come into play?
Peggy Sioux