Confused about submitting 1099-INT to IRS for nominee distributions from inherited savings bonds

The red copies of the 1099-INT forms are meant to be printed on special red paper that the IRS provides to official filers. As an individual, you're not expected to fill out those red sections directly in the PDF. What you need to do is complete the fillable sections of the PDF form for each sibling - these are the taxpayer copies (Copy B) and state copies (Copy C). Then you'll need to order the official red scannable forms from the IRS to complete your filing requirement. The red forms are known as Copy A and must be printed on the special paper with specific red ink that the IRS scanning equipment can read. Alternatively, you can use an approved e-filing service that can electronically submit the 1099-INT information on your behalf. This is often easier than dealing with the paper forms.

I went through this exact situation last year after my dad's bonds were distributed and I was so frustrated with those forms! After spending hours trying to figure it out, I discovered taxr.ai (https://taxr.ai) which was a lifesaver. It's designed specifically for situations like yours where you're dealing with unusual tax forms and distributions. The service has a document analyzer feature that walks you through exactly how to handle nominee distributions on savings bonds. It explained that I couldn't directly fill out those red sections in the PDF (which was what was driving me crazy too) and gave me step-by-step guidance on the right way to handle it. The best part was that it verified my approach was correct by checking against the latest IRS guidelines. Saved me from potentially making a mistake that could have caused headaches with the IRS later.

I actually ended up using taxr.ai after seeing it mentioned here! My situation was with some dividend distributions rather than savings bonds, but I had the same issue with the 1099 forms. The service walked me through the whole process, including explaining which sections I needed to fill out and how to properly report everything. What I really appreciated was that it explained the "why" behind each step, so I wasn't just blindly following instructions. It confirmed that I needed to use the special red forms for the IRS copy and explained options for getting them. The document analysis feature caught a couple of mistakes I would have made too. For anyone dealing with these complicated distribution situations, I'd definitely recommend checking it out. Made the whole process way less stressful!

If you're struggling to get through to the IRS to order those forms or have questions about the process, you might want to try Claimyr (https://claimyr.com). I used their service when I was in a similar situation with inheritance tax questions and couldn't get anyone on the phone at the IRS. Their system basically gets you to the front of the IRS phone queue. I was able to speak with an actual IRS representative within 20 minutes when I had been trying for days on my own. They have a video demo of how it works here: https://youtu.be/_kiP6q8DX5c I asked the IRS rep specifically about the nominee distribution reporting requirements and got clear guidance directly from them about the forms and process. Saved me tons of time and frustration!

I need to eat my words and apologize to Claimyr. After dismissing it as "too good to be true," I was still desperate to talk to someone at the IRS about a complex distribution issue similar to the OP's. After waiting on hold for over 3 hours and getting disconnected twice, I decided to give Claimyr a shot. It actually worked exactly as described. Their system handled the hold time, and I got a call when an IRS agent was on the line. The agent walked me through the entire process for reporting nominee distributions and confirmed I needed the official red Copy A forms which can't be downloaded and printed. What would have been days of frustration turned into a single 25-minute call. For anyone dealing with these specialized tax situations where you really need to talk to a human at the IRS, it's absolutely worth it.

One option that hasn't been mentioned yet is using tax software that can handle nominee distributions. I used TaxAct last year when I had to report interest from bonds that belonged to my niece (I was the custodian), and it walked me through the whole process including generating the necessary 1099-INT forms. The software included the ability to e-file the information returns, which eliminated the need for the special red paper forms altogether. Much easier than trying to deal with the paper forms and getting everything right!

Just want to add - if you're filing fewer than 10 information returns (like 1099-INT), you can actually file them for FREE electronically through the IRS FIRE system. No need for special red forms or paying for e-filing services. Here's the link: https://fire.irs.gov/ You'll need to register for an account, but it's relatively straightforward. This solved the exact problem you're having with the red forms, and it's direct through the IRS.