Court of Appeals for the Seventh Circuit June 22, 2004, 04-1148, 04-1150 (United States v. Northern Trust Company, as Trustee of the Caterpillar Incorporated Master Trust and the Inland Steel Industries Pension Trust)

EASTERBROOK, Circuit Judge.

Closed-end mutual funds pay federal income tax on income and capital gains, then notify their investors, to which the tax burden passes through. A shareholder that is tax exempt (such as a pension trust or a university endowment) can claim a refund of the taxes that the mutual fund paid on account of its proportionate investment.