I did a Google search for "cash liquidation distributions" and it found 15,500 results.  The first one, from Investopedia, tells you all you need to know:

Understanding Cash Liquidation Distribution

Proceeds from a cash liquidation distribution can be either a non-taxable return of principal or a taxable distribution, depending upon whether or not the amount is more than the investors' cost basis in the stock. The proceeds can be paid in a lump sum or through a series of installments.

Often, proceeds from cash liquidation distributions are reported on Form 1099-DIV. The IRS mandates that distributions of $600 or more must be reported on Form 1099-DIV. Any taxable amount the investor receives is reported on Schedule D,  the capital gains and losses statement that is filed with the IRS form 1040 during yearly tax filings.

Payments in excess of the total investment are capital gains, subject to capital gains tax. If the amount the investor receives is less than their original cost basis invested in the stock, the investor may report a capital loss which reduces their tax bill. This loss can only be reported once the firm issues a final cash liquidation distribution.

https://www.investopedia.com/terms/c/cash-liquidation-distribution.asp