Follow-up responses:
- Since you made the election to be taxed as an S corporation (for federal tax purposes), you will continue to treat all transactions as if they were made by an S corporation. So "no", it doesn't change anything
- Don't get hung up on that nothing was actually "sold". Just pay attention to the questions when you are entering the form 8949 item. It should still be called XYZ S corp liquidation" since you are an S corporation for federal income tax purposes.
- Also don't forget to contact your Secretary of State in case there are some forms that need to be handled at that level.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
