Frequently Asked Questions – IRS Form 1099-B (Closed-End Funds) - General Guidance

Sep 19, 2026

Frequently Asked Questions address how IRS Form 1099-B for closed-end fund transactions is reported and what investors must do when preparing tax returns. Topics include whether information is sent to the IRS, why cost basis reporting is required, and definitions of “covered” versus “noncovered” shares. Additional questions explain wash sale rules and how shareholders may download account-specific tax information using TurboTax or H&R Block, plus available help channels and limits on providing tax advice. IRS Circular 230 disclosure is included.

LanguageEnglish

CategoryLetters

FormatPDF

Pages1

AccessFree to download

Reporting to the IRS

Covered shares and noncovered shares

Cost basis reporting requirement

Tax rules and calculations

Wash sale definition

Downloading account-specific tax information

Getting help and disclosures

Guidance limits and contacting representatives

IRS Circular 230 disclosure

FREQUENTLY ASKED QUESTIONS – IRS FORM 1099-B (Closed-End Funds) | Q. Does information on my 1099-B taxform get reported to the IRS? | A. Yes, Computershare (the funds Transfer Agent) or your broker of record will send both you and the IRS form 1099-B that reports the details of your sale. In addition, for share transfers to brokers, Computershare will be required to furnish your broker with basis information on covered shares. | | --- | --- | | Q. Why do I have to report cost basis on my tax return? | A. Shareholders have always been required to report cost basis in their individual tax returns. However, as part of the Emergency Economic Stabilization Act of 2008, the IRS requires closed-end fund companies to provide cost basis information to both investors and the IRS on the sale of fund shares acquired after January 1, 2012 – called “covered” shares. | | Q. What are “covered” shares? | A. Covered shares are shares that were acquired on or after January
1, 2012, including those purchased through the automatic reinvestment plan. Transfer agents are required by the IRS to report cost basis to individuals and the IRS. | | Q. What are “noncovered” shares? | A. Noncovered shares are shares that were acquired prior to January 1, 2012, including those purchased through the automatic reinvestment plan. Transfer agents are not required to report cost basis to the IRS; however, the shareholder is still responsible for calculating cost basis for their individual tax returns. | | Q. What is a wash sale? | A. Under current IRS regulations, a wash sale occurs if a shareholder realizes a loss in the sale of an investment and a substantially identical investment is purchases within 30 days before or after the sale; a portion or all of the loss may be disallowed. | | Q. What software can be used for downloading account specific tax information? | A. Shareholders of the Virtus Closed-End Funds may be able to use TurboTax® or H&R Block for importing their 1099-B and 1099-DIV account tax information. Select Computershare from the drop-down menu. From there, follow the prompts. | | Q. Does my closed-end fund tax professional or anyone who can help mefill out my return? | A. Our telephone representatives will be happy to help you with any questions and information about your accounts by calling 866-270-7788; however, we cannot provide tax advice. For assistance in filling out your return, you should contact your tax professional.
Additional information can be found on the Closed-End Tax Information [page at Virtus.com](page at Virtus.com). | Please note: This information is not meant to be a substitute for professional tax advice. Consult your tax professional to determine your individual tax situation. Neither Virtus Funds, noranyofits representatives may give tax or legal advice. IRS Circular 230 Disclosure: Any information contained in the communication (including any attachments) is not intended to be used, and cannot be used, to avoid penalties imposed under the U.S. Internal Revenue Code. Individuals should seek independent tax advice based on their own circumstances.

FAQs

Does my 1099-B information get reported to the IRS?

Yes. Computershare (as funds Transfer Agent) or your broker of record sends both you and the IRS Form 1099-B reporting details of your sale. Computershare may also provide basis information to your broker for share transfers to brokers.

Why must I report cost basis on my tax return?

Shareholders have long been required to report cost basis. Under the Emergency Economic Stabilization Act of 2008, the IRS requires closed-end fund companies to provide cost basis information to both investors and the IRS for covered shares acquired after January 1, 2012.

What is the difference between “covered” and “noncovered” shares?

Covered shares are acquired on or after January 1, 2012 (including shares bought through the automatic reinvestment plan), and transfer agents are required to report cost basis to individuals and the IRS. Noncovered shares are acquired before January 1, 2012, for which transfer agents are not required to report cost basis to the IRS, though shareholders must still calculate it for their returns.

What is a wash sale?

A wash sale occurs when an investor realizes a loss on an investment sale and purchases a substantially identical investment within 30 days before or after the sale, and part or all of the loss may be disallowed under current IRS regulations.

Sep 19, 2026

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