[quote="seafood10"]let me be clear. i didn't make any sell for 2012. so the dividends that i earn on 2012 which automatically get reinvested, i have to report it to the irs no matter what? does it matter if i held my fund or sold all of my fund? so my $2400 dividends that i earn from 2012, i have to report it to irs? are there short and long term for capital gain on dividends?[/quote
You will pay tax for 2012 for dividends and realized capital gains which will be reported to you shortly in a 1099-Div.
You sold in 2013 so next year you will get the 1099-B for this sale.
If you had not reinvested dividends and realized capital gains:
You would owe short-term (because you held it less than a year) capital gains on the difference between your purchase price and selling price (there could be some fees involved also).
If you reinvested, there will be more purchases to raise the purchase price and thus lower your (capital gain) profit. (You don't get dividends from sales.)
If you had purchased more than a year ago, you would have long-term gains on that part of the sale, and short-term on reinvestments less than a year old.
If you sold partially, you would have capital gains (or losses) on the number of shares sold and would report that for the year in which it occurred.