@Critter-3
An S corporation liquidating distribution should be reported on form 1099-DIV box 9 or 10 as appropriate.
The liquidating distributions should not technically be reported on the K-1.
The liquidating distribution follows the corporate rules under Section 331.
See the following snippet from an S corporation treatise commentary.
The liquidating distribution ($32,000) is reported to Sam on Boxes 9 (for cash distributions) and 10 (for noncash distributions) of Form 1099-DIV and flows to Schedule D of his Form 1040. The original Form 1099-DIV must be sent to the IRS with transmittal Form 1096 (Annual Summary of Transmittal of U.S. Information Returns).
*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.
