Uneven Distribution of S-Corp Dividends
I have been in an S-Corp for several years with a partner. This year I wanted to get out of the corporation, or dislove the corporation. My (previous) partner refuses to dissolve, buy me out (even for nothing) and we are now going to court. In the mean time she removed over $120,000 from our joint company bank account. Prior to that she took over $80,000 in dividend distributions that I did not receive.
What are the tax laws with regard to this uneven distribution of dividends? I was under the impression that in an S-Corp all distributions had to be equal. (Or at least not this uneven)
Is she responsible for reporting these dividends on her taxes?
How do we handle the taxes for this S-Corp for 2006 filing?
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