Form 1099 or 1042-S and Cap Gains Distributions

[William]

I'm a US citizen and a landed immigrant in Canada permanently residing in Canada. I own a closed end mutual fund on the NYSE. I'm enrolled in its Dividend Reinvestment Plan and hold the stock certificate myself. I receive a 1042-S form every year from the transfer agent with my tax information. (As a US citizen, I think I'm probably supposed to get a 1099 but that's another issue.) In 2008 I got two distributions from the fund: 1) a common dividend and 2) a capital gain. Both were automatically re-invested by the DRIP. The 1042-S I received only indicates the dividend, it says nothing about the capital gains distribution. I was just told by the transfer agent that they no longer report capital gains distributions on either 1099 or 1042 forms. He said that capital gains distributions were a matter for "you to discuss with your tax accountant." This seems wrong to me. Are they not obligated to report all the distributions of the fund on the tax forms?

[testone]

As a U.S. citizen you shouldn't be receiving a Form 1042. The payor believe that you are a nonresident alien. A 1099 would report the capital gains.