I think that with the market doing so well that everyone is afraid that the Feds will start to raise the rates. I think thats why all the bond funds are taking a hard hit. I have most of my outside money in Muni funds for the tax break, but it looks like I am going to get hammered. There is just no good place to put tour money today if you don't want it in stocks.
No, there is nothing to report when it is in an IRA, if there is anything owed your broker will take care of it. It never shows up on a 1099 report. And YES you do pay tax on it when you take a distribution like any other investment in an IRA.