• Form 2439 is an IRS form that regulated investment companies (RICs)—mutual funds and exchange-traded funds—and real estate investment trusts (REITs) are required to circulate to shareholders to report unallocated long-term capital gains.

  • If a fund company chooses to retain its capital gains rather than distribute them to shareholders, it must pay taxes on behalf of the shareholders and report these transactions on Form 2439.
  • The net result of the distribution of capital gains for the shareholder is almost the same as in the distribution of capital gains.