Publication 564 |
2000 Tax Year |
Introduction
This publication provides federal income tax information for
individual shareholders of mutual funds, including
money market funds. It explains how to report distributions
paid to you by a mutual fund and any expenses connected with your
investment. In addition, it explains how to report undistributed
long-term capital gains. It also explains how to figure and report
your gain or loss when you sell, exchange, or redeem your mutual fund
shares. A comprehensive example, with filled-in forms, appears at the
end of the publication.
Mutual fund.
A mutual fund is a regulated investment company generally created
by "pooling" funds of investors to allow them to take advantage
of a diversity of investments and professional management.
Money market fund.
A money market fund is a mutual fund that tries to increase
current income available to shareholders by buying short-term market
investments.
Money market funds pay dividends and should not be confused with
bank money market accounts that pay interest.
Qualified retirement plans and IRAs.
The rules in this publication do not apply to mutual fund shares
held in individual retirement arrangements (IRAs), H.R. 10 (Keogh)
plans, section 401(k) plans, and other qualified retirement plans. The
value of the mutual fund shares and earnings allocated to you are
included in your retirement plan assets and stay tax free until the
plan distributes them to you. The tax rules that apply to retirement
plan distributions are explained in the following publications.
Comments and suggestions.
We welcome your comments about this publication and your
suggestions for future editions.
You can e-mail us while visiting our web site at
www.irs.gov/help/email2.html.
You can write to us at the following address:
Internal Revenue Service
Technical Publications Branch
W:CAR:MP:FP:P
1111 Constitution Ave. NW
Washington, DC 20224
We respond to many letters by telephone. Therefore, it would be
helpful if you would include your daytime phone number, including the
area code, in your correspondence.
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