If the taxpayer owns Series E or Series EE bonds and chooses to report the increase in redemption value as interest income each year, the taxpayer must continue to do so for all discount bonds that are owned or obtained later.

Question

Quizplus · Accepted Answer

This is true because once the taxpayer elects to report the increase in redemption value as interest income, they cannot change their method for any other discount bonds they own or acquire in the future.

If the Taxpayer Owns Series E or Series EE Bonds