"Hoping TP can reverse bad decision."

This is so strange; I wonder what problem they thought this would solve? And now you have to doubt the S Corp shares are even correct (which impacts K-1 allocation), since they likely were based on value of property being contributed (how many shares, which value used, etc) and that would be something to address. There are the tax considerations for the contribution and/or the disposition, in that the shareholder had a basis, the property had a value, and the change of ownership of the property can trigger tax consequences.