ARLINGTON, Va., June 17, 2015 /PRNewswire/ -- Arlington Asset
Investment Corp. (NYSE: AI) (the "Company") today announced that it
is revising the tax characterization of its distributions to
shareholders for calendar year 2014 to be nontaxable returns of
capital. The Company had previously reported on Form 1099-DIV
that all of its 2014 distributions to shareholders were qualified
dividends eligible for reduced capital gains rates.
Under applicable tax law and regulations for C-corporations,
distributions to shareholders in excess of current or accumulated
earnings and profits should be reported as returns of capital
instead of qualified dividends. Distributions that are
classified as returns of capital are nontaxable to the extent they
do not exceed a shareholder's adjusted tax basis in the Company's
stock, or as a capital gain to the extent that the amount of the
distribution exceeds a shareholder's adjusted tax basis in the
Company's stock. In preparing its federal income tax returns
for 2014, the Company has now determined that it did not have
current or accumulated earnings and profits for the year ended
December 31, 2014, and therefore all
of the Company's distributions to shareholders in 2014 should have
been reported as returns of capital instead of qualified
dividends. The Company recommends that shareholders consult
with their tax advisor to determine their specific reduction in tax
liability from this change.
The Company has instructed its transfer agent to issue an
amended Form 1099-DIV to registered holders of its common stock for
the 2014 year. For shareholders whose shares are held through
a brokerage firm or other nominee, the brokerage firm or nominee is
responsible for issuing an amended Form 1099-DIV for the 2014 year,
and such shareholders should contact their brokerage firm directly
regarding obtaining an amended Form 1099-DIV.
About the Company
Arlington Asset Investment Corp. (NYSE: AI) is a principal
investment firm that currently invests primarily in
mortgage-related and other assets. The Company is
headquartered in the Washington,
D.C. metropolitan area. For more information, please
visit www.arlingtonasset.com.
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SOURCE Arlington Asset Investment Corp.