JosephS1
Expert Alumni

Business & farm

When dissolving a S Corporation all the steps taken prior to distributions of the AAA account have to be accounted for.  You state the remaining accounts that make up the S Corps retained earnings are now zero except for the AAA account that based on the above, appears to have a remaining balance.  The remaining balance will be distributed to the shareholders to completely zero out the accounts.  Hopefully you maintained and accurate record of AAA and what is called "Earnings and Profits" so if it is ever contended, you have the documents to back up any contention.  I have linked below an article that lists the steps necessary to completely dissolve an S Corporation so you can adjust your records and statements accordingly:

 

The Importance of tracking AAA and Earnings and Profits

Closing a business per the IRS

Dissolving an S Corp - Everything you need to know

 

@dnelson225 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"