Total Capital Gain Distributions relating to an UTMA account

[fitchman]

My 9-year-old grandson received a 1099-Div for the UTMA account that I set up for him that reflected a Total Capital Gain Distribution in the amount of $7,324.96.  The distribution was reinvested in the same mutual fund. I'm trying to figure out if I need to file a return for him and, if so, how?

[Bsch4477]

The parent can file form 8814 which would avoid having a return filed for the child. 

https://www.irs.gov/pub/irs-pdf/f8814.pdf

Otherwise the child files his own return with the parents paying Kiddie tax on some of that income. 

[SteamTrain]

....and, note that the re-investment is immaterial to having to report the distribution(s).  The $$ distributed are treated as-if the account received the funds, and then were used to purchase more.   The re-invested amounts just add to the mutual fund's cost basis when they are eventually sold.