Election to treat distribution coming from E&P & 1099

Technical topics regarding tax preparation.
#1
AmirK  
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133
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23-Apr-2014 10:40am
Location:
Texas
I am dealing with an S Corporation that has C corporation E&P. The corporation has two shareholders; an individual and a QSST. The corporation will make an election for 2021 with its tax return to treat the distribution made during the year, as first coming from E&P. At issue is to whom the 1099-Div should be issued.
I understand the beneficiary of the QSST is considered the owner of the S Corporation stock and therefore, it makes sense to issue the 1099-Div to the beneficiary. However, I am not 100% sure about that and wanted to hear your take if you have had experienced this issue before. Appreciate your input.
 

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