An S corporation is essentially a C corporation that has made an election to be taxed as an S corporation.
There are certain code sections that apply specifically to S corporations.
However, liquidations are not one of them.
Liquidating distributions are governed by IRC Section 336.
Here is some discussion from an IRS directive to field agents:
Upon an S corporation’s liquidation, IRC 336(a) requires the recognition of gain or loss to the corporation as if all the distributed assets were sold at their fair market value. If the S Audit Tool - S Corporation Built-in corporation sells all its assets to a third party as part of a plan of liquidation, then the gain or Gains & Other Taxes Issue Guide loss is recognized by the corporation irrespective of any plan of liquidation and just cash remains for the IRC 336(a) gain computation. However if the assets are distributed to the shareholders as part of the liquidation then the gain or loss must be recognized based upon the FMV of the assets distributed.
And then the instructions to form 1099-DIV:
https://www.irs.gov/pub/irs-pdf/i1099div.pdf
*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.
