Tax Question - TIPs Mutual Funds

[Gone4Good]

This question is for anyone who owns a mutual fund holding TIPS, like Vanguard's Inflation-Protected Securities Fund. When tax time comes do you get a 1099 showing both dividends paid and taxes owed on the undistributed inflation accretion? I assume you do but was curious how that was handled in a mutual fund. If you can somehow defer the tax on the accretion portion, the funds might be worthwhile. Otherwise seems like a bad deal compared with buying the bonds directly.

 

[poboy]

http://flagship4.vanguard.com/VGApp/hnw/FundsSnapshot?FundId=0119&FundIntExt=INT

Hope link works, if not go to Vanguard , Look at vipsx, (tips fund).  Quarterly distributions, dividends, long and short term gains. Tried to copy but too much data to paste. I do not own this fund, have other funds but not sure about inflation info. You could give vanguard a call .