Virtus Global Multi Sector Income Fund : 2022 VGI Tax Information
January 25, 2023 at 12:41 pm EST
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VIRTUS CLOSED-END FUNDS
2022 TAX INFORMATION - COMMON STOCK SHAREHOLDERS
PLEASE READ CAREFULLY
To assist you and your tax professional in completing your tax return, we are providing you with the following information. The table below indicates the tax character of distributions paid by the Virtus Closed-End Funds listed below on its common stock for the calendar year 2022. The distributions paid in January 2023 are reportable in calendar year 2022 for tax purposes. Please consult with your tax advisor for information related to your personal tax situation.
Per Share
As a Percentage of Ordinary
Return of
Income Dividends
Capital
Ordinary
Return of
Total
Qualified
Dividends
Capital Gain
Percentage
VIRTUS CLOSED-END FUND
Symbol
Income
Received
Distributions
Capital
Distributions
Dividends
Dividends
Deduction
Virtus Global Multi-Sector Income
VGI
$0.461
$0.000
$0.499
$0.960
51.98%
0.00%
0.00%
Fund
Virtus Total Return Fund Inc.
ZTR
$0.206
$0.268
$0.486
$0.960
50.63%
82.92%
40.88%
Ordinary Income Dividends (shown in Box 1a of your Form 1099-DIV) - These distributions will be taxed as ordinary income whether received in cash or reinvested in stock.
Capital Gain Distributions (shown in Box 2a of your Form 1099-DIV) - Shows the portion of the Fund's total distributions that represent long term capital gains.
Return of Capital (shown as "Nondividend distributions" in Box 3 of your Form 1099-DIV) - These distributions represent a non-taxable return of capital. These distributions are a tax-free return of capital and should not be reported as income, whether received in cash or reinvested in stock. The distributions from return of capital will, however, reduce your cost basis in the shares.
Qualified Dividends (shown in Box 1b of your Form 1099-DIV) - The percentage of the ordinary income dividends that may be eligible for reduced capital gains tax rates.
Dividends Received Deduction - The percentage of the ordinary income dividends that qualify for the dividends received deduction allowed to certain corporate shareholders.
Please refer to the "2022 Income Earned from U.S. Government Obligations" enclosure mailed with your 2022 Form 1099-DIV for the portion of your ordinary income dividends that was derived from earnings on direct obligations of the U.S. Government.
If you have any questions on VGI or ZTR, please visit the Virtus Closed-End Fund section of our website at Virtus.com or contact Shareholder Services at 1-866-270-7788, Monday through Thursday 8:30 a.m. to 6:00 p.m. Eastern Time and Fridays until 5:00 p.m.
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.
2022 Income Earned from U.S. Government Obligations
Percent of Income from U.S. Government Obligations (see notes below)
CLOSED-END FUNDS
Virtus Global Multi-Sector Income Fund
2.47%
Virtus Total Return Fund Inc.
1.28%
Funds not listed either paid no ordinary income dividends or had less than 1% from U.S. Government securities.
To determine the portion of dividend income that may be exempt from state tax:
1.
Enter the dividend income reported in Box 1a on Form 1099-DIV.
1. __________________
2.
Enter the total percentage of income earned from U.S. obligations shown above.
2. __________________
3.
Multiply line 1 by line 2 to determine the portion of government income.
3. __________________
Most states do not tax the portion of mutual fund dividends (Total ordinary dividends, box 1a on Form 1099-DIV) earned on direct U.S. government obligations and certain U.S. government agency obligations. Each state defines which U.S. government and agency securities are exempt from tax in its jurisdiction.
State laws vary, so we encourage you to consult with your tax professional or your state / local tax office to determine whether your state allows you to exclude some or all of the income you earn from mutual funds that invest in U.S. government obligations.
California, Connecticut, and New York only 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 listed above qualify for exemption in these states.
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.
FOR MORE INFORMATION
Contact your financial representative, or call Virtus Closed-End Funds for service at 1-866-270-7788. Information on the Fund is available at www.virtus.com.
Virtus Global Multi-Sector Income Fund published this content on 25 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2023 17:40:23 UTC.
Virtus Global Multi-Sector Income Fund (the Fund) is a diversified, closed-end management investment company. The Fundâs investment objective is to maximize current income while preserving capital. The Fund seeks to generate high current income and total return by applying credit research to capitalize on opportunities across undervalued sectors of the global bond markets. The Fund's portfolio includes sectors, such as consumer discretionary, energy, consumer staples, financials, healthcare, industrials, information technology, materials, real estate, telecommunication services and utilities. The Fund may invest in direct debt instruments, which are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates. The Fund may invest in obligations of borrowers in bankruptcy proceedings. The investment adviser of the Fund's is Virtus Investment Advisers, Inc. Newfleet Asset Management, LLC serves as the Fund's sub-advisor.
VIRTUS GLOBAL MULTI-SECTOR INCOME FUND 
