We are required to calculate and report the amount of exempt interest income subject to the alternative minimum tax (AMT). See the Alternative Minimum Tax Table for the percentages of your tax-exempt dividends that should be treated as a tax preference item. If you are subject to the federal alternative minimum tax, use this percentage to determine what portion of your tax-exempt dividends is subject to this tax. Additionally, municipal bonds purchased (by an individual or a mutual fund) in the secondary market at a discount and then sold at a higher price can be subject to treatment as ordinary income pursuant to the IRS’s Market Discount Rule. Use the Taxable Income table to determine the percentage of total exempt interest dividends that are taxable and reported in box 1a on Form 1099-DIV.
The Tax Increase Prevention and Reconciliation Act of 2005 requires all interest paid on tax-exempt bonds and exempt-interest dividends from a mutual fund be reported to the IRS. Exempt-interest dividend amounts less than $10 are not reported to the IRS. However, if taxes were held, you will receive tax reporting on it. Some states do not tax mutual fund dividends derived from interest earned on state or municipal securities. To find the percentage of dividends attributed to specific state or municipal securities, see the State Income Tax Table.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
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