Updated October 19, 2026. Quick answer: Box 2 of Form 2439 is the tax the regulated investment company or real estate investment trust already paid on the gain shown in box 1a. The shareholder instructions say you can apply for a refund or credit of it, and they send individuals to line 13a of Schedule 3 (Form 1040) of the 2021 form or the applicable line on the current year form.
What box 2 reports
The printed label is “2 Tax paid by the RIC or REIT on the box 1a gains”. The shareholder instructions describe it this way: “This amount is the tax paid by the RIC or REIT on the undistributed long-term capital gains shown in box 1a.” The instructions then add: “You can apply for a refund or credit of this tax as follows.”
The fund’s side of the form says the same thing in fewer words: “Enter the tax paid on the amount in box 1a.” The gain itself is the subject of Form 2439 boxes 1a to 1d. Box 2 is the companion figure: box 1a is the gain, and box 2 is tax the fund has paid because of it.
Where the credit or refund goes, by type of filer
The route depends on who you are. The table gives the starting point for each type of shareholder, using the instructions as printed.
| Who you are | What the shareholder instructions say |
|---|---|
| Individuals, nonresident aliens, estates and trusts | “Individuals, nonresident aliens, and estates and trusts. See line 13a of Schedule 3 (Form 1040) of the 2021 form or the applicable line on the current year form” |
| Corporations other than S corporations | “Corporations (other than S corporations). See Schedule J, line 20a of Form 1120 of the 2021 form or the applicable line on the current year form” |
| All other corporations | “All other corporations report this amount on the line designated as” “Credit for tax paid on undistributed capital gains.” |
| S corporations and partnerships | “S corporations and partnerships. See the Specific Instructions for Schedules K and K-1, Part III (Forms 1120-S and 1065) for details on reporting each item to the shareholders and partners.” |
| Exempt organizations and certain trustees | “Exempt organizations and certain trustees. See the Instructions for Form 990-T if it is filed by” |
For an individual the first row is the one that applies. The page on that line is Schedule 3 lines 13a to 13d. Note the phrase about the year: the instructions name the 2021 line and then “the applicable line on the current year form”. Because the form was last revised in November 2021, this page does not supply a current year line number. Look at the Schedule 3 for the tax year of your own return.
The IRA and exempt organization sentence
The last group in the instructions is where an IRA appears. The text reads: “See the Instructions for Form 990-T if it is filed by:” “Organizations exempt from tax under section 501(a) filing Form 990-T to claim their refund of income tax paid on undistributed long-term capital gains, or” “Trustees for individual retirement arrangements (IRAs) described in section 408 (including accounts described in section 408(h)) filing a single composite Form 990-T to claim the refund referred to above.”
Two practical points follow from the wording. First, this is about who files the Form 990-T, and the sentence names the trustee, not the IRA owner. Second, the fund’s own instructions say copies for an IRA go to the trustee or custodian, as covered on Form 2439 boxes 1a to 1d. If your shares are in an IRA, the trustee is the party the instructions point to for this refund.
Box 2 and your other tax figures
The individual route named in the instructions runs through Schedule 3, not Schedule D. Tax withheld is covered at Form 1040 line 25. The gain in box 1a is reported on Schedule D as described on Schedule D lines 13 to 15 and Schedule D (Form 1040).
The attached copies matter too. The form’s Copy B is marked “Attach to the shareholder’s income tax return for the tax year that includes the last day of the RIC’s or REIT’s tax year.” Copy C is marked “For shareholder’s records.”
If you are a nominee
When the shares are held for someone else, the instructions require box 2 to match across the chain of forms. The nominee passage reads: “The total undistributed long-term capital gains entered in box 1a; the amounts entered in boxes 1b, 1c, and 1d and the tax shown in box 2 on the Form 2439 for each owner must agree with the amounts on Copy B that you received from the RIC or REIT.” The sibling page for the other boxes is Form 2439 boxes 1a to 1d, and the Form 1099-CAP page, Form 1099-CAP boxes 1 to 5, covers a different kind of corporate notice.
Edition and box numbers
The edition used for this page is Form 2439 (Rev. November 2021), with its instructions for the shareholder on Copies B and C. Check the year and edition printed on the form you received, because box numbers can change between editions.
Common mistakes
- Ignoring box 2 because the fund, not you, paid the tax. The instructions say “You can apply for a refund or credit of this tax as follows.”
- Using one route for every filer. The instructions split by type, for example “Exempt organizations and certain trustees.”
- Copying the 2021 line number onto a later return. The instructions say “the applicable line on the current year form”.
Related: Schedule 3 lines 13a to 13d, Form 1040 line 25, Schedule D lines 13 to 15, and Schedule D (Form 1040).
Sources
- Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains (Rev. November 2021), with Instructions for the Shareholder: https://www.irs.gov/pub/irs-pdf/f2439.pdf
- IRS: About Form 2439: https://www.irs.gov/forms-pubs/about-form-2439
Read from the IRS documents linked above on October 19, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.