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Business & farm
No, your S-Corp doesn't need to issue Form 1099-DIVs when shareholders take distributions. Like you mentioned above, these distributions should be reported on each shareholder's K-1.
The distributions are not tax deductible to the S-Corp and they are not taxable income to the shareholders. The distributions are a return of the shareholder's paid in capital and reduce their shareholder equity.
‎June 6, 2019
12:35 AM