Since Air Lease caused an corrected 1065 to be issued, when
is the deadline for filing an amended 2022 return? Will the
bivio software create and file an amended return
electronically? Despite the IRS having a page titled
"Guidance for Amended Partnership Returns"
(https://www.irs.gov/e-file-providers/guidance-for-amended-partnership-returns)
I did not see guidance for a deadline to file an amended
return.

Hi all,

Some brokers have been issuing corrected 1099s because Air Lease (AL) has reclassified 2022 dividends as Return of Capital. Whether or not you've received a corrected 1099, this applies to all owners of Air Lease. Bivio does not automatically reclassify your dividends to agree with your broker. You need to make manual adjustments to Air Lease in bivio. The reclassifications impact the cost basis of your AL shares. Check your 2021 AL classifications as well.

You can find the current AL dividend classifications on page three of these 2022 and 2021 documents:

2022:
https://d17avvkqn7yvpt.cloudfront.net/s3_airleasecorp/documents/IRS%20Form%208937_2022_FINAL_Signed.pdf

2021:
https://d17avvkqn7yvpt.cloudfront.net/s3_airleasecorp/documents/FILE_0004.pdf

If you have filed your 2022 taxes with AL dividends classified as qualified, your club may have over-reported qualified dividends on your tax return and K-1's and may pay more taxes than is owed. If your club chooses to re-file, since it is before March 15 you can still file a superseding return which is much easier than amending. We are not able to e-file superseding or amended returns this year.

To file a superseding return, first correct your records in bivio. Then go to the bivio tax program and generate and print an updated tax return and review it. Mail a signed copy of your updated tax form to the IRS before the March 15th deadline, following these instructions:

1) Print your complete downloaded tax return including K-1 forms and any attachments.

2) Make sure you sign the tax return.

3) Write "Superseding Return" at the top of each page.

4) Mail by certified mail, return receipt requested on or before March 15. Keep proof of mailing.

You club members will each need to download their updated K-1s.

Another option if you choose to re-file and need more time is this:

Even though you may have already e-filed, you can file an extension before March 15 and then file a superseding return before the extension due date. You would still want to file the superseding return before your members' tax deadline, however.

Here is information about filing an extension with the IRS:
https://www.bivio.com/site-help/bp/Filing_For_An_Extension_Help

If you have state tax return filing requirements you will need to send new state forms in as well. You need to check on any state tax extension options.

AL reclassified their 2021 dividend payments twice and they may continue to do late re-classifications in 2022 and future years. Your club may want to discuss if continuing to hold the stock is worth the tax issues due to the late dividend reclassifications.

Becky Kruse
bivio

If I reclassify my 2021 dividends, do I need to re run this year taxes again? 2022- I already reclassified these dividends


> On Mar 11, 2023, at 10:56 AM, Becky Kruse <kruse@bivio.biz> wrote:
>
> Hi all,
>
> Some brokers have been issuing corrected 1099s because Air Lease (AL) has reclassified 2022 dividends as Return of Capital. Whether or not you've received a corrected 1099, this applies to all owners of Air Lease. Bivio does not automatically reclassify your dividends to agree with your broker. You need to make manual adjustments to Air Lease in bivio. The reclassifications impact the cost basis of your AL shares. Check your 2021 AL classifications as well.
>
> You can find the current AL dividend classifications on page three of these 2022 and 2021 documents:
>
> 2022:
> https://d17avvkqn7yvpt.cloudfront.net/s3_airleasecorp/documents/IRS%20Form%208937_2022_FINAL_Signed.pdf
>
> 2021:
> https://d17avvkqn7yvpt.cloudfront.net/s3_airleasecorp/documents/FILE_0004.pdf
>
> If you have filed your 2022 taxes with AL dividends classified as qualified, your club may have over-reported qualified dividends on your tax return and K-1's and may pay more taxes than is owed. If your club chooses to re-file, since it is before March 15 you can still file a superseding return which is much easier than amending. We are not able to e-file superseding or amended returns this year.
>
> To file a superseding return, first correct your records in bivio. Then go to the bivio tax program and generate and print an updated tax return and review it. Mail a signed copy of your updated tax form to the IRS before the March 15th deadline, following these instructions:
>
> 1) Print your complete downloaded tax return including K-1 forms and any attachments.
>
> 2) Make sure you sign the tax return.
>
> 3) Write "Superseding Return" at the top of each page.
>
> 4) Mail by certified mail, return receipt requested on or before March 15. Keep proof of mailing.
>
> You club members will each need to download their updated K-1s.
>
> Another option if you choose to re-file and need more time is this:
>
> Even though you may have already e-filed, you can file an extension before March 15 and then file a superseding return before the extension due date. You would still want to file the superseding return before your members' tax deadline, however.
>
> Here is information about filing an extension with the IRS:
> https://www.bivio.com/site-help/bp/Filing_For_An_Extension_Help
>
> If you have state tax return filing requirements you will need to send new state forms in as well. You need to check on any state tax extension options.
>
> AL reclassified their 2021 dividend payments twice and they may continue to do late re-classifications in 2022 and future years. Your club may want to discuss if continuing to hold the stock is worth the tax issues due to the late dividend reclassifications.
>
> Becky Kruse
> bivio

Good morning
In response to the post from Becky Kruse regarding
superseding returns I have these questions. If each page of
the return must be marked with "Superseding Return" at the
top of each page" and the partners are allowed to download
K1s, then the partner's K1 will not have this marking. Is
that permissible?

The post also indicates that the Superseding Return should
be filed before the partner's returns are due even if an
extension was filed for the partnership return. If the
partner has filed for a personal extension does that extend
the date for filing a Superseding Return for the
partnership?

What is the proper way to file an Amended Return? Is it
necessary to also file Form 1065-X along with a 1065 marked
as an Amended Return?

Thanks,
Scott

Hi Scott,

Members can download K-1s that are not marked superseded or amended because they do not submit the K-1s with their personal tax returns. You need to make sure that members are informed that they need to download and use any updated K-1s.

You asked: "The post also indicates that the Superseding Return should be filed before the partner's returns are due even if an extension was filed for the partnership return. If the partner has filed for a personal extension does that extend the date for filing a Superseding Return for the partnership?"

The answer is no. A partner's personal extension does extend the partnership's filing date.

If possible, the partnership's superseding return should be filed in a timely manner before the partners file their personal returns so they do not individually need to re-file or file for a personal extension unless they choose to.

In order to file an amended partnership tax return, you need to re-generate the entire tax package. Make sure that the "amended" box is checked on page 1 of Form 1065 and the top of each K-1. Amended returns need to be mailed to the IRS. bivio does not offer e-filing for amended returns. Club members need to download their amended K-1s.

If you club did not opt out of CPAR, you will also have to prepare Form 1065-X. This is not a simple form to fill out. You may need to work with an outside accountant. The instructions are on the IRS website:

https://www.irs.gov/forms-pubs/about-form-1065-x

Becky Kruse
Bivio

Last week Air Lease filed IRS form 8937 for 2023 which shows both the taxable dividend and the non-taxable return of capital. https://airleasecorp.com/investors/stock-information

Our E*Trade 1099 incorrectly reports that 100% of the Air Lease dividend is a qualified dividend. The Air Lease form 8937 for 2023 shows four quarterly dividends of $0.20 per share of which $0.05 is a non-taxable return of capital (which reduces the basis of the stock).

Ty H.
Moose Pond Investors

Margaret:

As of the time I am writing this message, 4:00 P.M. MST; the
tax software has NOT been released.

I do not read anything in the prior message that implies
that the software has been released. The message merely
alerts owners of Air Lease stock that they will have to make
some adjustments to the 1099 data when they do prepare their
tax reports.

Jack

Previous air lease info is from 2023.
Sent from my iPhone

> On Feb 20, 2024, at 6:45 PM, John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote:
>
> Margaret:
>
> As of the time I am writing this message, 4:00 P.M. MST; the
> tax software has NOT been released.
>
> I do not read anything in the prior message that implies
> that the software has been released. The message merely
> alerts owners of Air Lease stock that they will have to make
> some adjustments to the 1099 data when they do prepare their
> tax reports.
>
> Jack