assuming the tax ID # on the a/c is that of the S Corp. it is the S Corp that reports the dividends. the gross gets reported on schedule K line 5a and the qualified dividend amount gets reported on line 5b.
those numbers flow through to your k-1
upon liquidation appreciated assets are deemed sold at fair market value.. in effect you get taxed on the appreciation. if any. then the FMV of the stock distributed becomes your basis. if you are planning on liquidating the corp the least costly to you would be to distribute the cash proceeds from actual sales to yourself. if you have basis in your s-corp then the cash distributions will reduce it and as long as your basis remains positive those cash distributions are tax free.
note that the IRS wants form 966 filed
A corporation (or a farmer’s cooperative) must file Form
966 if it adopts a resolution or plan to dissolve the
corporation or liquidate any of its stock.
When To File
File Form 966 within 30 days after the resolution or plan is
adopted to dissolve the corporation or liquidate any of its
stock. If the resolution or plan is amended or
supplemented after Form 966 is filed, file another Form
966 within 30 days after the amendment or supplement is
adopted. The additional form will be sufficient if the date
the earlier form was filed is entered on line 11 and a
certified copy of the amendment or supplement is
attached. Include all information required by Form 966
that was not given in the earlier form.
Where To File
File Form 966 with the Internal Revenue Service Center at
the address where the corporation (or cooperative) files
its income tax return.
Distribution of Property
A corporation must recognize gain or loss on the
distribution of its assets in the complete liquidation of its
stock. For purposes of determining gain or loss, the
distributed assets are valued at fair market value.
