TurboTaxPatriciaV, assuming the 2016 1120S return is marked as final, you'd advised that the final distribution should be reported on my 2017 personal return as "investment income". However, if no 2017 K-1 .............how do I document that "final distribution"? Doesn't a reporting form of some sort need to accompany that cover letter ....a 1099-DIV perhaps?
You advised: "Distributions affect only cash and owner's equity, neither of which is reported to the IRS." Noting the following Shareholder's Instructions for Schedule K-1 (Form 1120S):
"Schedule K-l doesn't show actual
dividend distributions the corporation
made to you. The corporation must
report such amounts totaling $10 or
more for the calendar year on Form
1099-DIV, Dividends and
Distributions."
With the above instructions in mind and your recommendation the S-Corporation be officially closed end of 2016, it doesn't appear that a 1099-DIV can be generated for 2017. Specifically then, how should I document that final distribution in 2017?
Also, assuming that final distribution is paid out to shareholders as the final S-Corporation business check in March 2017, presumably, it would be prudent to file an estimated first quarter tax payment to the IRS for shareholders 2017 personal returns?
