Total Capital Gain distribution (2a)

[Stryker22]

Received my 1099-DIV and block 2(a) shows the total capital gain distribution.  However, all that was reinvested into those funds and nothing actually distributed to me.  I have seen on other posts that in the "eyes of the IRS" funds were distributed.  While looking up other sources, you don't pay the taxes on the capital gains until you actually sell the stock.  So no stock were sold.  How is this reported?  Are the taxes paid on the "Distributions" in block 2(a) regardless of you actually getting the funds directly?

[DavidD66]

You have to pay tax on capital gain distributions and dividends even if they are reinvested and you don't sell any shares.  Those distributions are you share of the net capital gains of your mutual fund from selling holdings of the fund.  That is taxable.  You don't pay capital gains on increases in the value of your investment until you sell.  That is considered unrealized capital gain.  

[VolvoGirl]

Those capital gains on your 1099 Div are not from your sales but internal sales in the mutual fund that are passed on to you.  If you actually sold some shares you would get a 1099B for sales.  We had another post on it that explains it more.  Maybe I can find it.