Fund 1099-DIV

Mar 04, 2010 4 Replies
R

A closed end fund 1099-DIV (Morgan Stanley Emerging Market Debt Fund) only accounts for three of the four dividends declared in 2009. Is that correct?



For 2008, the 1099-DIV included the four dividends that were declared in



2008, even though the last one was not paid until Jan 2009. I thought they would follow the same practice for 2009.

But no, they only included on the 2009-DIV the first three dividends that were declared in 2009. The fourth payment was declared in December (Ex-Date 12/22/09; RecordDate 12/24/09), but not paid until 1/8/2010.



I had thought that "Dividends declared and made payable by mutual funds in October, November, or December are considered received by shareholders on December 31 of the same year even if the dividends are actually paid during January of the following year." (Pub 564) would apply to this "nondiversified, closed-end management investment company".



--ron


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D

I would watch for a corrected 1099 from your broker. Those are typically available from your broker's website a week or two before they show up in the mail.

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T

This might be one of those Widely Held Fixed Income investments that don't issue corrected 1099s until late February or even later. Have you checked their web site for any information about this?

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R

I don't have access to this account through their web site, but I'll poke around there anyway.

It does seem as if you and "DF2" feel they made a mistake.

--ron

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R

Some sleuthing, provoked by the advice I got here suggesting that the 1099 I was looking at was incorrect, cleared up the matter.

It seems the account at Morgan Stanley was closed prior to the last payout and the holdings transferred in kind to an account at Fidelity. So the fourth quarter dividend, which was paid in 2010, was reported by Fidelity on the 1099-DIV for 2009 that they provided.

Thanks to both of you. It's nice to clear up loose ends. This is part of my Mom's estate and she kept most, but not all, of her holdings in certificate form. I'm sure she always knew exactly what was going on, but it has not been simple to reconstruct things.

--ron

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