This is the first time I am preparing taxes for my in-laws. Last year (2022), my father-in-law dissolved an S-corporation where he was the lone shareholder. The only documentation I have to reference is their 2021 tax return. Within that return on form 1120-S, schedule M-2 shows a balance in the accumulated adjustments account at the end of tax year 2021 of $53,840.
He did not receive any tax forms in 2023 from the attorney that handled the dissolution of the business in 2022. I do not know what to do with the $53,840 that appears on schedule M-2 at the end of tax year 2021.
Thanks in advance for your help.
