16D indicates cash or property was distributed to you that was not deducted from the S-Corps profits nor treated as a taxable dividends (the norm). Distributions or losses reported require the filing form 7203, S-corps like C-Corps distribute profits to their owners in the form of dividends. But for tax purposes, they are e treated differently. For a C-Corp owner such distributions are taxable. They are double-taxed. Once when the C-corp earns the profits and pays taxes on them and again when distributed to the shareholder who is taxed on those distributions. To avoid this double taxation businesses that qualify may elect S-corp status. It pays no Federal Corporate Income Taxes. Rather the taxation occurs at the owner level. S-Corp "Dividend" distributions are not taxable income as long as the owner has tax basis in the corp after the distribution. Rather they reduce the shareholder's basis.
