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Tax Center

Tax Planning Resources from Virtus Investment Partners

Effective tax planning can help you manage your investment strategy. We provide information and tools to guide you through the process — and we give you access to current tax information.

Filing your 2016 Taxes

Virtus Mutual Funds has the following resources to help you file your 2016 taxes:

Tax Forms Reference

A list of the tax forms Virtus provides investors and their anticipated mailing dates.

Mutual Funds Supplementary Tax Information

Federal and state and fund-specific tax tables in PDF format.

Didn't receive a tax form from Virtus Investment Partners?

Your fund may not have declared a dividend or capital gain in 2016. View the list of funds' distributions.

Personal Tax Forms and Year-End Account Statement

Account Access required

Cost Basis

Cost Basis is now provided on Form 1099-B and reports gains or losses generated from a sale or exchange of shares

Visit Tax-Center Cost Basis to learn more about cost basis changes effective January 1, 2012.

Need help with Virtus Investment Partners' tax forms?

If you don't see the form you received or need listed below, email or call us at 1-800-243-1574.

Other tax questions?

Ask the IRS. 1-800-829-1040 — or order the IRS' "Guide to Free Tax Services." 1-800-829-3676 or www.irs.gov

Additional Information for Taxpayers

If you invested in a tax-exempt fund that paid exempt interest dividends during the 2016 tax year, we are required to provide you with Form 1099-DIV*. 
*Form 1099-DIV is NOT provided for those distributions under $10.00. 

Distributions of $10 or more must be reported on your tax returns, whether you received cash or reinvested additional fund shares. 

The percentage of tax-exempt income from the Virtus Newfleet CA Tax-Exempt Bond Fund subject to the federal alternative minimum tax for the 2016 tax year is 6.22%.

The percentage of tax-exempt income from the Virtus Newfleet Tax-Exempt Bond Fund subject to the federal alternative minimum tax for the 2016 tax year is 0.0%.

Shareholders with incorrect or missing Social Security Numbers (also called Taxpayer Identification Numbers) will be subject to the IRS required 28% withholding from all distributions and redemptions. If your Social Security Number is incorrect or missing from your tax form(s), please complete Form W-9 and send it to Virtus Investment Partners.

Mail: 
PO Box 9874 
Providence RI, 02940-8074

Fax: 
1-508-599-6179

Email: 
Virtus Customer Service

Download and print Form W-9 , or obtain one by calling us at 1-800-243-1574 or by visiting your local post office.

Related Sections 

Personal Tax Forms and Year-End Account Statement (Account Access required)

Receive future tax forms online

Tax Form Reference Guide and Supplementary Tax Information

Here is a brief list of the types of tax forms Virtus Investment Partners provides mutual fund shareholders. 

1099-DIV: Dividends and Capital Gains Distributions

Who receives it: Investors in non-retirement accounts who received dividends and/or capital gains distributions over $10, regardless of whether they were reinvested or paid in cash. 

Form 1099-DIV will be mailed by February 15th.

» Sample 1099-DIV Tax Form

» Additional 1099-DIV Tax Form Information

» 2016 Mutual Fund Distribution History

» 2016 Qualified Dividend Income ("QDI")

» 2016 Dividends Received Deduction ("DRD")

» 2017 Year-End Distribution Estimates as of 10/24/2017

» Capital Gain Distributions Frequently Asked Questions

Foreign Tax Credit, if applicable, will be shown in box 6 on 1099-DIV and is based on your share of the fund's foreign taxes paid. The foreign taxes paid are based on the income the mutual fund received from its investments in foreign corporations and the taxes the fund paid to foreign governments at the mutual fund level.

» 2016 Foreign Tax Information

1099-INT: Interest Income

This information was previously provided on form 1099-INT for tax exempt (box 8) and Alternative Minimum Tax (box 9). It is now being reported to the IRS on Form 1099-DIV in boxes 10 and 11.

1099-B: Proceeds from a Redemption or Exchange

Who receives it: Investors who redeemed or exchanged shares in a non-retirement account.

Form 1099-B will be mailed by February 15th.

» Sample 1099-B Tax Form

» Additional 1099-B Tax Form Information

Cost Basis

Cost Basis information is now provided on Form 1099-B and reports gains or losses generated from a sale or exchange of shares

Who receives it: Eligible investors in non-retirement accounts who receive a 1099-B. Virtus Investment Partners uses the Average Cost Single Category method to determine the cost basis.

Visit Tax-Center Cost Basis to learn more about cost basis changes effective January 1, 2012.

1099-R: Distributions, Including All IRA Conversions and Recharacterizations

Who receives it: Investors who took a distribution from a retirement account*, including those who converted a traditional IRA to a Roth IRA. You will not receive this form if you transferred assets directly from one retirement account to another.

Form 1099-R will be mailed by January 31st. 

» Sample 1099-R Tax Form

» Additional 1099-R Tax Form Information

*Retirement accounts include Individual Retirement Accounts (IRAs), Roth IRAs, Simplified Employee Pension (SEP) plans, and SIMPLE accounts. Important note: By law, all personal tax information provided to you by Virtus Investment Partners is also been provided to the IRS, except average cost.

Form 5498: Contributions to IRAs

Who receives it: Investors who made contributions to traditional, Roth, SIMPLE, or SEP IRAs, including rollovers, conversions and recharacterizations.

Form 5498 will be mailed by May 31st.

» Sample 5498 Tax Form

1099-Q: Gross Distribution from Qualified Education Programs (Coverdell ESA)

Who receives it: Investors who made a redemption from a Coverdell ESA. Form 5498-ESA: Coverdell ESA contribution information Who receives it: Investors who made contributions to a Qualified Education Program (Coverdell ESA).

Form 1099-Q will be mailed by January 31st.

Form 5498-ESA will be mailed by May 1st.

» Sample 1099-Q Tax Form

2016 Mutual Fund Tax Tables

A reference for residents of states that do not tax mutual fund dividends earned on securities issued by the U.S. Government. 

» Fund Income Derived from U.S. Government Securities 


Important note for residents of California, Connecticut, and New York: 
These states allow exemptions from state tax if a fund had at least 50% of its assets invested in exempt securities each quarter. Based on this requirement, none of the Virtus Funds qualify for exemption in these states.

State-Specific Tax Tables

A reference for California residents to determine the portion of dividends earned from interest on municipal obligations issued by California and Puerto Rico, which are exempt from state taxes.

» Virtus California Tax-Exempt Bond Fund 

Fund-Specific Tax Tables

These tables report the percentage of dividends earned from tax-exempt bonds.

» Virtus Tax-Exempt Bond Fund

Need help with Virtus Investment Partners' tax forms?

If you don't see the form you received or need listed below, email or call us at 1-800-243-1574.

Tax questions?

Ask the IRS. 1-800-829-1040 -- or order the IRS' "Guide to Free Tax Services." 1-800-829-3676 or www.irs.gov

Additional Information for Taxpayers

If you invested in a tax-exempt fund that paid exempt interest dividends during the 2016 tax year, we are required to provide you with Form 1099-DIV*.

*Form 1099-DIV is NOT provided for those distributions under $10.00. 

Distributions of $10 or more must be reported on your tax returns, whether you received cash or reinvested additional fund shares.

The percentage of tax-exempt income from the Virtus Newfleet CA Tax-Exempt Bond Fund subject to the federal alternative minimum tax for the 2016 tax year is 6.22%.

The percentage of tax-exempt income from the Virtus Newfleet Tax-Exempt Bond Fund is subject to the federal alternative minimum tax for the 2016 tax year is 0.0%.

Shareholders with incorrect or missing Social Security Numbers (also called Taxpayer Identification Numbers) will be subject to the IRS required 28% withholding from all distributions and redemptions. If your Social Security Number is incorrect or missing from your tax form(s), please complete Form W-9 and send it to Virtus Investment Partners.

Mail: 
PO Box 9874
Providence, RI 02940-8074 
Fax: 1-508-599-6179

Email: 
Virtus Customer Service

Download and print Form W-9 , or obtain one by calling us at 1-800-243-1574 or by visiting your local post office.

Related Sections

Personal Tax Forms and Year-End Account Statement - Account Access required

Receive future tax forms online.

New IRS Cost Basis Reporting Regulations Information You Need To Know

Frequently Asked Questions

New Cost Basis Reporting

Legislation, enacted in October 2008 as part of the Emergency Economic Stabilization Act, requires mutual fund companies to report to the Internal Revenue Service (IRS), on Form 1099-B, cost basis of shares sold or exchanged from a non-retirement account. In addition, the regulations require the reporting of the customer's adjusted basis and whether any gain or loss on the sale is short-term or long-term. These changes are effective beginning January 1, 2012, ("effective date"). This applies to shares purchased on or after January 1, 2012 and are known as "covered" shares.

Definition of Cost Basis

Each time you redeem shares from your account there is a gain or loss associated with that redemption. If a mutual fund is sold for a profit; the capital gain is the difference between the net sale price of the fund and its net cost, or cost basis. If a mutual fund is sold below its cost, the difference is a capital loss. The shareholder must pay taxes on the capital gain for the year in which the fund was sold; conversely, the shareholder may be able to claim a tax deduction for a capital loss, to offset a gain.

Accounts that Are Impacted

Only non-retirement accounts subject to IRS Form 1099-B reporting that fall under the new regulations are considered eligible for cost basis reporting. Accounts that are not subject to Form 1099-B reporting are not impacted by the changes. These are generally IRAs and other retirement plan accounts as well as money market fund accounts.

Covered vs. Non-covered Shares

Non-covered shares are shares that were acquired before the effective date. Such shares are grandfathered and mutual fund companies are not required to provide mandatory cost basis reporting for these shares. Although these shares are not covered under the new requirements, you will be required to report them when you prepare your federal tax return. As in the past, Virtus will not provide the cost basis of non-covered shares to the IRS, but will continue to provide Average Cost information to you, if available, for eligible accounts as a service.

In the event you need to request the account history for your non-covered shares, which will provide the necessary information needed to calculate your cost basis, we ask that you complete our Transcript Request Form . Please be advised, depending on the number of years requested, there may be a fee involved. Please refer to the form for the applicable fees.

Covered shares are shares purchased to eligible accounts after the effective date and are subject to mandatory cost basis reporting. The cost basis reporting information for covered shares will be included on Form 1099-B to you and to the IRS, as required by law.

Electing or Changing Cost Basis Method

There are several cost basis method options you may choose from. Because of the complexities of the different methods, we strongly encourage that you consult with your tax professional when deciding on a method. Information can also be obtained by visiting the IRS website at www.irs.gov.

Virtus Mutual Funds selected the Average Cost method as our funds’ default method. If you would like to use Average Cost as the method for your covered shares, you do not need to do anything at this time. Your account will default to the Average Cost method unless you elect another method. We provide many IRS-approved methods for determining your cost basis on covered shares – each method has different tax implications.

You may choose to elect one of the following Cost Basis calculation and depletion methods:

Default Method Description
Average Cost

Determined by dividing the total cost of the shares owned at the time of the sale/exchange by the total number of shares owned to produce an average cost per share. Shares acquired first are sold first to determine your holding period.

If you would like to use Average Cost for your covered shares, you do not need to do anything. If available, average cost will be calculated separately for your non-covered shares.

Other Methods Description
First In, First Out (FIFO) Shares acquired first are sold first.
Last In, First Out (LIFO) Shares acquired last are sold first.
High Cost In, First Out (HIFO) Shares with highest purchase price are sold first.
Low Cost In, First Out (LOFO) Shares with lowest cost basis are redeemed first.
High Cost Long-Term In, First Out (HILT) Shares with the long-term highest cost available are sold first.
High Cost Short-Term In, First Out (HIST) Shares with the short-term highest cost available are sold first.
Low Cost Long-Term In, First Out (LILT) Shares with the long-term lowest cost available are sold first.
Low Cost Short-Term In, First Out (LIST) Shares with the short-term lowest cost available are sold first.
Specific Lot Depletion You identify specific shares to sell, exchange or transfer at the time of each transaction. The original purchase dates and prices of the shares you choose will determine your cost basis and holding period.
Updating Your Cost Basis Method Election

If you have not elected a cost basis method, you may retroactively change the fund’s default of average cost to another method before the settlement date of the first redemption, exchange, or transfer by logging into your account at Virtus.com, by completing a Cost Basis Election Form or by submitting your request in writing. Requests to change to or from the Average Cost method must always be in writing. Note: IRS regulations do not permit the change of a cost basis election on trades that have already been executed.

Cost Basis Election Form

Virtus Account Login

When You Redeem Shares

When you redeem shares from your account using the Average Cost or FIFO method, we will deplete your non-covered shares first. Other methods will deplete shares as your elected method specifies. For all covered shares sold the cost basis will be calculated according to your Cost Basis Method Election. If you do not designate the cost basis reporting method to be used prior to or at the time of your redemption, the trade will be processed using our default method of Average Cost.

Tax Reporting

If you redeem eligible covered shares from your account in 2012 or later, the Form 1099-B that you will receive will provide cost basis and gain or loss information specific to the covered shares redeemed. As a service, we will continue to report to you Average Cost basis data, if available, on non-covered shares as well. The non-covered shares data is for information purposes and is not reported to the IRS. Cost basis reporting on covered and non-covered shares will be separate.

We strongly encourage that you consult your tax professional if you have any questions about your cost basis reporting options. Information can also be obtained by visiting the IRS website at www.irs.gov.

IRS Circular 230 Disclosure: Any information contained in this 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.

Frequently Asked Questions

Importing Tax Data into TurboTax®

1099-DIV and 1099-B tax forms will be available for TurboTax download on February 16, 2017.

As a Virtus Mutual Funds shareholder and user of TurboTax, you may be able to import certain mutual fund information directly from your account to TurboTax. Here's how.

What Information You Can Import:

For non-retirement accounts, you may import Forms 1099-B and 1099-DIV. For Retirement accounts, you may import your 1099-R.

Getting Started

The instructions below will provide the steps to assist you with importing your Virtus Mutual Funds tax-related data into TurboTax. Virtus Mutual Funds do not provide customer support relating to the TurboTax software; for a list of common questions and answers, please refer to TurboTax's common questions and answers page.

If you have questions about your Virtus Mutual Funds tax documents, please contact your financial advisor or call one of our Client Service Representatives at 800-243-1574.

Please read the Terms and Conditions below before importing your tax documents.

How to Import Your Information

Once you receive your Form-1099, have it available to verify the important information and follow these simple steps.

  1. If you have not already started your TurboTax return, select New Tax Return from the File menu in TurboTax.
  2. From the File menu select Import and then select From Financial Institution.
  3. In the box labeled I'm looking for: type Virtus Mutual Funds.
  4. Select Virtus Mutual Funds from the scrolling list box and click Continue.
  5. From the Sign on to Virtus Mutual Funds screen:
    • Enter your Virtus Mutual Funds Account Number (do not include any fund trading symbol)
    • Enter your formatted Social Security Number (or EIN taxpayer ID for trust accounts) including dashes (eg., XXX-XX-XXXX format for SSN's or XX-XXXXXXX for EIN's).
    • Click Continue.
  6. Your tax forms will appear on the These Documents Are Now Ready for Import screen. To view the details of each document, click View Details to the right of the document. A dialog box will appear detailing the items TurboTax will import; when you are finished reviewing the details, select Close to return to These Documents Are Now Ready for Import screen.
  7. Click Import Now to import the selected items into your TurboTax return (a dialog box will appear to let you monitor the status of the download). From the Import Summary screen, select Done.
  8. Click Continue to begin the TurboTax interview process.

If you have multiple accounts, all related tax form data for your taxpayer ID number should be imported in the above single step.

Terms and Conditions

Virtus Mutual Funds and their affiliates and service providers (collectively, "Virtus") do not provide tax advice. Please consult a tax professional for advice specific to your individual circumstances.

Important: Be sure to verify that the imported information matches the information contained in the tax forms provided by Virtus Mutual Funds. The tax data provided for the import is an additional service and there is no guarantee that it is sufficient for tax reporting purposes. Virtus is not liable for your reliance upon or use of the import feature or the data provided through such feature. If you have specific questions regarding the preparation of your tax return, contact your tax advisor, the IRS, or the state(s) to which you report.

It is important to understand that the tax information imported into TurboTax products may not be all of the information required for you to properly complete the investment income portion of your federal and/or state tax return. It is essential that you complete the TurboTax Interview and/or Review processes in their entireties to ensure that all imported information is correctly reported to the IRS and/or the state(s) to which you report.

Before using this information, review the important legal information and terms of use:

Intuit
The use of the TurboTax branded tax preparation software and web-based products is governed by Intuit's applicable license agreements. Intuit, the Intuit logo, TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries and are used with permission. Intuit is not affiliated with Virtus. If you use TurboTax or any other Intuit product, you will be subject to the applicable terms and conditions of use for these products, including a separate privacy policy, which may differ from the Virtus Mutual Funds privacy policy. You should read and understand all applicable terms for TurboTax and other Intuit products before using them. Intuit is solely responsible for the information, content and software products provided by Intuit. Virtus cannot guarantee that the information and content supplied is accurate, complete, or timely, or that the software products provided produce accurate and/or complete results. Virtus does not make any warranties with regard to the information, content or software products or the results obtained by their use. Virtus disclaims any liability arising out of your use (or the results obtained from, interpretations made as a result of, or any tax position taken in reliance on information provided pursuant to, your use) of these Intuit software products or the information or content furnished by Intuit.

Form 8937: Organizational Actions Affecting Basis of Securities

Issuers of corporate securities are required to complete Internal Revenue Service Form 8937 to report organizational actions that affect the basis of securities. Examples of organizational actions that could affect basis are reorganizations, stock splits or nontaxable distributions.

IRS Circular 230 Disclosure: Any information contained in this 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.