Federal Notice to Shareholder of Undistributed Long-Term Capital Gains

Notice to Shareholder of Undistributed Long-Term Capital Gains
Form 2439 (Rev. November 2021)
VOID
Name, address, and ZIP code of RIC or REIT

CORRECTED
OMB No. 1545-0123

Notice to Shareholder of Undistributed
Long-Term Capital Gains

Form 2439
(Rev. November 2021)

, or other tax year
For calendar year 20
of the regulated investment company (RIC) or the
real estate investment trust (REIT)
beginning
ending

Identification number of RIC or REIT

1a Total undistributed long-term capital gains

Shareholder’s identifying number

1b Unrecaptured section 1250 gain

Shareholder’s name, address, and ZIP code

1c Section 1202 gain

1d Collectibles (28%) gain

2 Tax paid by the RIC or REIT on the box 1a gains

Form 2439 (Rev. 11-2021)

Cat. No. 11858E

www.irs.gov/Form2439

, 20
, 20

, and

Copy A
Attach to
Form 1120-RIC
or Form 1120-REIT.
For Instructions
and Paperwork
Reduction Act
Notice, see back of
Copies A and D.

Department of the Treasury - Internal Revenue Service

Instructions for the Regulated Investment
Company (RIC) and the Real Estate
Investment Trust (REIT)
Section references are to the Internal Revenue Code.

Reporting Information
1. Complete Copies A, B, C, and D for each shareholder for
whom the regulated investment company (RIC) or real estate
investment trust (REIT) paid tax on undistributed capital gains under
section 852(b)(3)(D) or 857(b)(3)(C).
2. Attach Copy A of all Forms 2439 to Form 1120-RIC or Form
1120-REIT when it is filed at the appropriate IRS service center.
3. Furnish Copies B and C of Form 2439 to the shareholder by the
60th day after the end of the RIC’s or the REIT’s tax year.
4. Retain Copy D for the RIC’s or REIT’s records.
For a shareholder that is an individual retirement
arrangement (IRA), send Copies B and C to the trustee or
custodian of the IRA. Do not send copies to the owner of
CAUTION the IRA.

!
▲

RIC’s or REIT’s name, address, and identification number. Enter
the name, address (including ZIP code) and employer identification
number (EIN) of the RIC or REIT as shown on Form 2438,
Undistributed Capital Gains Tax Return.
Shareholder’s identifying number, name, and address. Enter the
shareholder’s social security number (SSN), name, and address
(including ZIP code). If the shareholder is not an individual, enter the
EIN. If a shareholder is an IRA, enter the identification number of the
IRA trust. Do not enter the SSN of the person for whom the IRA is
maintained.
The RIC or REIT can truncate a shareholder’s identifying number
on the Form 2439 the RIC or REIT sends to the shareholder.
Truncation is not allowed on the Form 2439 the RIC or REIT files
with the IRS. Also, the RIC or REIT cannot truncate its own
identification number on any form.
To truncate, where allowed, replace the first 5 digits of the 9-digit
number with asterisks (*) or Xs (for example, an SSN xxx-xx-xxxx
would appear as ***-**-xxxx or XXX-XX-xxxx). For more information,
see Regulations section 301.6109-4.
Box 1a. Enter the amount of undistributed capital gains from line
11, Form 2438 (Rev. December 2020) or the applicable line of the
current revision of the form, allocable to the shareholder.
(Continued on the back of Copy D)

VOID
Name, address, and ZIP code of RIC or REIT

CORRECTED
OMB No. 1545-0123

Notice to Shareholder of Undistributed
Long-Term Capital Gains

Form 2439
(Rev. November 2021)

, or other tax year
For calendar year 20
of the regulated investment company (RIC) or the
real estate investment trust (REIT)
beginning
ending

Identification number of RIC or REIT

1a Total undistributed long-term capital gains

Shareholder’s identifying number

1b Unrecaptured section 1250 gain

Shareholder’s name, address, and ZIP code

1c Section 1202 gain

1d Collectibles (28%) gain

2 Tax paid by the RIC or REIT on the box 1a gains

Form 2439 (Rev. 11-2021)

www.irs.gov/Form2439

, 20
, 20

, and

Copy B
Attach to the
shareholder’s
income tax return
for the tax year
that includes the
last day of the
RIC’s or REIT’s
tax year.

Department of the Treasury - Internal Revenue Service

Instructions for the Shareholder
Section references are to the Internal Revenue Code.

Reporting Information
Shareholder’s identifying number. For your protection, Form 2439
may show only the last four digits of your identifying number (social
security number (SSN), etc.). However, the RIC or REIT has reported
your complete identifying number to the IRS.
Box 1a. This amount is your total undistributed long-term capital
gain from your regulated investment company (RIC) or real estate
investment trust (REIT).
Report the total amount as a long-term capital gain on the
appropriate Schedule D. For example, individuals report this amount
on line 11, column (h), of Schedule D (Form 1040). Estates and
trusts report this amount on Schedule D (Form 1041).
Corporate shareholders report this amount in Part II of Form
8949. See Form 8949, Schedule D (Form 1120), and the related
instructions for details.
If there is an amount in box 1b, 1c, or 1d, special instructions
apply for entering those amounts on the appropriate Schedule D.
See Undistributed Capital Gains in the Schedule D (Form 1040)
and Schedule D (Form 1041) instructions.

Box 1b. This amount is the unrecaptured section 1250 gain.
Individual filers report this amount on line 11 of the Unrecaptured
Section 1250 Gain Worksheet in the Schedule D (Form 1040)
instructions for 2021 or the applicable line of the worksheet in the
instructions for the current year. Estates and trusts use this amount
to complete the Unrecaptured Section 1250 Gain Worksheet in the
Schedule D (Form 1041) instructions.
Box 1c. This amount applies to the portion of the amount in box 1a
attributable to a section 1202 gain (sale of qualified small business
stock). Individual filers, see Exclusion of Gain on Qualified Small
Business (QSB) Stock in the Schedule D (Form 1040) instructions.
Estates and trusts, see Exclusion of Gain on Qualified Small
Business (QSB) Stock (Section 1202) in the Schedule D (Form 1041)
instructions.
Box 1d. This amount is the collectibles gain (28% rate gain) portion
of the amount in box 1a. Individual filers enter this amount on line 4
of the 28% Rate Gain Worksheet in the Schedule D (Form 1040)
instructions for 2021 or the applicable line of the worksheet in the
instructions for the current year. Estates and trusts use this amount
to complete the 28% Rate Gain Worksheet in the Schedule D (Form
1041) instructions.
Box 2. This amount is the tax paid by the RIC or REIT on the
undistributed long-term capital gains shown in box 1a. You can
apply for a refund or credit of this tax as follows.
(Continued on the back of Copy C)

VOID
Name, address, and ZIP code of RIC or REIT

CORRECTED
OMB No. 1545-0123

Notice to Shareholder of Undistributed
Long-Term Capital Gains

Form 2439
(Rev. November 2021)

, or other tax year
For calendar year 20
of the regulated investment company (RIC) or the
real estate investment trust (REIT)
beginning
ending

Identification number of RIC or REIT

1a Total undistributed long-term capital gains

Shareholder’s identifying number

1b Unrecaptured section 1250 gain

Shareholder’s name, address, and ZIP code

1c Section 1202 gain

, 20
, 20

, and

Copy C
1d Collectibles (28%) gain

For shareholder’s
records.

2 Tax paid by the RIC or REIT on the box 1a gains

Form 2439 (Rev. 11-2021)

www.irs.gov/Form2439

Department of the Treasury - Internal Revenue Service

Instructions for the Shareholder (Continued)
Individuals, nonresident aliens, and estates and trusts. See
line 13a of Schedule 3 (Form 1040) of the 2021 form or the
applicable line on the current year form, or Schedule G, line 16a of
Form 1041 of the 2021 form or the applicable line on the current
year form, and the related instructions.
Corporations (other than S corporations). See Schedule J, line
20a of Form 1120 of the 2021 form or the applicable line on the
current year form, or line 5f of Form 1120-F of the 2021 form or the
applicable line on the current year form, and the related instructions.
All other corporations report this amount on the line designated as
“Credit for tax paid on undistributed capital gains.”
S corporations and partnerships. See the Specific Instructions
for Schedules K and K-1, Part III (Forms 1120-S and 1065) for
details on reporting each item to the shareholders and partners.
Exempt organizations and certain trustees. See the
Instructions for Form 990-T if it is filed by:
1. Organizations exempt from tax under section 501(a) filing Form
990-T to claim their refund of income tax paid on undistributed
long-term capital gains, or
2. Trustees for individual retirement arrangements (IRAs)
described in section 408 (including accounts described in section
408(h)) filing a single composite Form 990-T to claim the refund
referred to above.

Nominees. If you are not the actual owner of the shares for which
this form is issued, you must do the following.
1. Complete Copies A, B, C, and D of Form 2439 for each owner.
The total undistributed long-term capital gains entered in box 1a;
the amounts entered in boxes 1b, 1c, and 1d and the tax shown in
box 2 on the Form 2439 for each owner must agree with the
amounts on Copy B that you received from the RIC or REIT.
2. Enter your name as “Nominee” and your address in the block
for the RIC’s or REIT’s name and address, and the RIC’s or REIT’s
name and address in the same block.
3. Write “Nominee” in the upper right corner of the Copy B you
received from the RIC or REIT and attach it to the Copy A you
completed.
4. File the Copy B you received (with an attached Copy A) with
the Internal Revenue Service Center where you file your income tax
return.
5. Give the actual owner Copies B and C of the forms you
complete.
6. Copy D is to be maintained by the RIC or REIT.
A nominee has 90 days after the close of the RIC’s or REIT’s tax
year to complete items 1 through 5 above. However, a nominee
acting as a custodian of a unit investment trust described in section
851(f)(1) has 70 days. A nominee who is a resident of a foreign
country has 150 days.

VOID
Name, address, and ZIP code of RIC or REIT

CORRECTED
OMB No. 1545-0123

Notice to Shareholder of Undistributed
Long-Term Capital Gains

Form 2439
(Rev. November 2021)

, or other tax year
For calendar year 20
of the regulated investment company (RIC) or the
real estate investment trust (REIT)
beginning
ending

Identification number of RIC or REIT

1a Total undistributed long-term capital gains

Shareholder’s identifying number

1b Unrecaptured section 1250 gain

Shareholder’s name, address, and ZIP code

1c Section 1202 gain

www.irs.gov/Form2439

, and

Copy D
1d Collectibles (28%) gain

2 Tax paid by the RIC or REIT on the box 1a gains

Form 2439 (Rev. 11-2021)

, 20
, 20

For records of the
regulated
investment
company or the
real estate
investment trust.

Department of the Treasury - Internal Revenue Service

Instructions for the RIC and the REIT
(Continued)
Box 1b. Enter the shareholder’s allocable portion of the amount
from box 1a that has been designated as unrecaptured section
1250 gain from the disposition of depreciable real property.
Box 1c. The section 1202 gain is the portion of box 1a that is
attributable to the sale or exchange by the RIC of qualified small
business stock issued after August 10, 1993, and held for more than
5 years. Enter the shareholder’s allocable portion of the amount
from box 1a attributable to a section 1202 gain. In addition, attach a
statement that reports separately for each designated section 1202
gain the following information: the amount of the section 1202 gain,
the name of the corporation that issued the stock, the dates on
which the RIC acquired and sold the stock, and the shareholder’s
portion of the RIC’s adjusted basis and sales price of the stock.
Box 1d. Enter the shareholder’s allocable portion of the amount
from box 1a attributable to collectibles gain (28% rate gain). Do not
include any section 1202 gain in box 1d.
Box 2. Enter the tax paid on the amount in box 1a.
Future developments. For the latest information about
developments related to Form 2439 and its instructions, such as
legislation enacted after they were published, go to
www.irs.gov/Form2439.

Paperwork Reduction Act Notice. We ask for the information on
this form to carry out the Internal Revenue laws of the United
States. You are required to give us the information. We need it to
ensure that you are complying with these laws and to allow us to
figure and collect the right amount of tax.
You are not required to provide the information requested on a
form that is subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating to a
form or its instructions must be retained as long as their contents
may become material in the administration of any Internal Revenue
law. Generally, tax returns and return information are confidential,
as required by section 6103.
The time needed to complete and file this form will vary depending
on individual circumstances. The estimated burden for business
taxpayers filing this form is approved under OMB control number
1545-0123 and is included in the estimates shown in the instructions
for their business income tax return.
If you have comments concerning the accuracy of these time
estimates or suggestions for making this form simpler, we would
be happy to hear from you. You can send us comments from www.
irs.gov/FormComments. Or you can write to the Internal Revenue
Service, Tax Forms and Publications Division, 1111 Constitution
Ave. NW, IR-6526, Washington, DC 20224.