26Title 26The US tax code, read & explained

26 U.S.C. § 1372

§ 1372. Partnership rules to apply for fringe benefit purposes

126 words · cited by 3 other sections

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Added in 1982 by the Public Law 97-354. Last changed October 19, 1982 by the Public Law 97-354.

Every change, newest first (1)
  1. October 19, 1982Public Law 97-354 · added this section

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) General rule
  2. (b) 2-percent shareholder defined
(a) General rule

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.

(b) 2-percent shareholder defined

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.