Some 25 million Bonds worth more than $9 billion have matured and are no longer paying interest, but have not been cashed or rolled over into new Bonds.

"Nine billion dollars is a lot of money in interest-free loans to the U.S. Government," says Connie Lorz, EA, President of the California Society of Enrolled Agents.

Enrolled Agents are tax professionals licensed by the federal government to represent taxpayers and assist them with tax planning and the tax return preparation. EAs are the only taxpayer representatives who receive that right from the U.S. government, rather than from individual states.

U.S. Savings Bonds are Treasury Department securities, and are backed by the full faith and credit of the United States. More than 55 million people hold Bonds in various series and denominations.

According to the U.S. Treasury's Bureau of Public Debt, the value of unredeemed Bonds no longer earning interest has ballooned from $5.9 billion in 1999 to $9.4 billion this year. That's because this type of investment was extremely popular in the 1950s and 1960s, and those 30- and 40-year "Baby Boomer" Bonds have now matured.

In addition, each year more than 15,000 new Savings Bonds are returned to the Treasury as undeliverable.

"The good news is that lost, stolen, or destroyed Bonds can be replaced," Lorz says. "Send a letter with as full a description of the facts as possible—approximate issue date, type of Bond, denominations, serial numbers (if known) and the names, addresses, and Social Security numbers that could have appeared on the Bonds. The more information you include, the better!" The letter should be sent to:

The Department of the Treasury 
Bureau of the Public Debt 
Parkersburg WV 26106-1328

For information about the tax ramifications of Savings Bonds, or any other tax-related questions, taxpayers in California can locate Enrolled Agents in their area by calling toll-free 1-800-TAXPRO-5 or online at http://www.csea.org. Outside California, the Enrolled Agent referral number is 1-800-424-4339.

Source: California Society of Enrolled Agents, September 30, 2002.

November 2002