<sbernelli[at]hotmail.com> wrote
- quote -



Most likely, yes and yes. Contact the fund company to find out the basis of
the settlement to see how you handle it, and then it's most likely taxable
if you 1) didn't report the income or 2) took a deduction for the expense.
It matters where you report it.




--
Paul A. Thomas, CPA
Watkinsville, Georgia

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I recently received several relatively small checks from several
mutual fund companies where I had or have accounts. On the check
advices, it states, in part:

"On July 12, 2004, the SEC approved a settlement of an administrative
proceeding against [mutual fund] and established a fair fund..." and
"You are receiving the attached check because the independent
distribution consultant has determined that you are eligible to
receive a distribution payment from the [mutual fund] fair fund".

Does anyone know what this is? Is it taxable? Thanks.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >