S-Corp was to close 12/31/2013 but Shareholder took distributions in 2014. Should I still file a final return for 2013 TY or should I file regular return for 2013 TY then file short year final return for 2014 TY?
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It seems to me that if all the business operation ceased in 2013, then the additional distribution in 2014 would just be a final distribution reported in 2014 (Form 1099-DIV - liquidating distribution). In this case, you would have a 1099DIV for 2013 and 2014 reporting the liquidating distributions for each respective year.
Make certain the corporation did not collect an unrealized receivable in 2014. These should be paid to the shareholder and reported as part of the liquidating distributions.
The key is no business operations in 2014.
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