Statute · United States Code

26 U.S.C. § 1372 — Partnership rules to apply for fringe benefit purposes

26 U.S.C. § 1372

Type
Statute
Source
United States Code
Jurisdiction
Federal
Date
2025-01-06
Topic
employee-benefits-and-executive-compensation

For purposes of applying the provisions of this subtitle which relate to employee fringe benefits— (1) the S corporation shall be treated as a partnership, and (2) any 2-percent shareholder of the S corporation shall be treated as a partner of such partnership. For purposes of this section, the term "2-percent shareholder" means any person who owns (or is considered as owning within the meaning of section 318) on any day during the taxable year of the S corporation more than 2 percent of the outstanding stock of such corporation or stock possessing more than 2 percent of the total combined voting power of all stock of such corporation.

Citator

26 U.S.C. § 1372 — Partnership rules to apply for fringe benefit purposes is in force in the current edition of the Code, and nothing recorded condemns it.

For purposes of applying the provisions of this subtitle which relate to employee fringe benefits— (1) the S corporation shall be treated as a partnership, and (2) any 2-percent shareholder of the S corporation shall be treated as a partner of such partnership. For purposes of this section, the term "2-percent shareholder" means any person who owns (or is considered as owning within the meaning of section 318) on any day during the taxable year of the S corporation more than 2 percent of the outstanding stock of such corporation or stock possessing more than 2 percent of the total combined voting power of all stock of such corporation.