Taxpayers Who Own Mutual Funds Recognize Their Share of Capital

question 16

True/False

Taxpayers who own mutual funds recognize their share of capital gains even if no distributions are received.

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Definitions:

Executive Branch

The branch of government responsible for implementing and enforcing laws, usually led by a president or prime minister.

Administrative Law Judge

An official who presides over government agency hearings, making decisions on disputes, regulations, or rights.

Administrative Action

Proceedings and activities carried out by government agencies to enforce laws, regulations, and policies.

Final Order

The final decision of an administrative agency on an issue. If no appeal is taken, or if the case is not reviewed or considered anew by the agency commission, the administrative law judge’s initial order becomes the final order of the agency.