<prompt> Human: Hey all,Long story short, in May of 2015 I cashed a bunch of savings bonds that totaled including interest to about 50,000. However, unknown to me, one of my parents had cashed these bonds about 10 years ago by reporting them as lost or stolen. So in turn, I still had the paper bonds, but they were no longer valid since one of my parents had already cashed them all out 10 years ago. In July of 2015, I got a letter in the mail from the Treasury saying I had to pay them all the money back I received from these bonds. I am now on a 3 year payment plans, I have never missed a payment yet. I got a 1099-INT from the bank I cashed these bonds in at. For those that dont know a 1099-INT tells you how much interest you received from the bonds. Ironically enough, this interest amount isnt even correct, since technically the bonds stopped earning interest 10 years ago. However, the 1099-INT reported the interest as if they had not been cashed 10 years ago if that makes sense. Am I expected to pay taxes on this? Clearly I am paying it back, I signed legal documentation from the Treasury saying that I am paying all this back on a three year payment plan. I have never missed a payment.In my mind this is more of a loan, which I know are not taxable. My tax guy told me that he had never encountered such a situation. He also threw in that I should go after my parents legally for doing this to me but thats not the point of this post. He said that we will write off the money from the bonds and include a letter explaining what happened, as well as include proof that I am paying the money back. He said that the IRS is so backed up it will be about two years by the time they even see it. I will practically be done paying this all back by that time.I just wanted to get your guys advice on this. As if paying back 50,000 to the Treasury because of my shitty parents isnt enough, now I have to worry about them trying to tax me on money I am paying back :Thank you.  <response>: Ive never heard of such a situation but I like your accountants advice. The irs cant really count it as income Id theyre taking it back. 