If you bought out other shareholders, you had a change in ownership. Indicate this by editing the final item on the Business Info page "Has an Ownership Change" and click the "yes" box.
Under Shareholder Information, edit each shareholder who left the company and "Check this box if this was the last year this shareholder held shares in [corporation name]."
Continue through the Shareholder interview to enter any additional information, especially those about the change in ownership.
Use Forms Mode to check for red exclamation marks, which indicate the related form has errors that need to be fixed before you can e-file. Click the Errors icon at the top of the forms list to show an explanation of the errors below the open form.
Note that the purchase of stock is not reported by the S-Corp. The purchasing shareholder has an increase in their personal basis in the S-Corp and the leaving shareholders report a sale on their personal tax returns. For more information, see IRS S corporation stock and debt basis.
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