The handling of distributions and liquidations in S corporations can be confusing at best and our article in the May 30, 2008 Agricultural Law Digest1 in retrospect did little to clarify the situation. The important point is that S corporation distributions are handled differently than S corporation liquidations.2
Harl, Neil E.
"S Corporation Distributions and Liquidations,"
Agricultural Law Digest: Vol. 19
, Article 1.
Available at: http://lib.dr.iastate.edu/aglawdigest/vol19/iss24/1