{"identifier":"/us/usc/t26/s1372","title":26,"num":"\u00a7\u202f1372.","heading":"Partnership rules to apply for fringe benefit purposes","text":"\u00a7\u202f1372.\nPartnership rules to apply for fringe benefit purposes\n(a)\nGeneral rule\nFor purposes of applying the provisions of this subtitle which relate to employee fringe benefits\u2014\n(1) the S corporation shall be treated as a partnership, and\n(2) any 2-percent shareholder of the S corporation shall be treated as a partner of such partnership.\n(b)\n2-percent shareholder defined\nFor purposes of this section, the term \u201c2-percent shareholder\u201d 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.","url":"https://projectusc.org/usc/t26/s1372.html","content":[{"t":"sec","id":"/us/usc/t26/s1372","children":[{"t":"num","text":"\u00a7\u202f1372."},{"t":"heading","text":"Partnership rules to apply for fringe benefit purposes"},{"t":"subsec","id":"/us/usc/t26/s1372/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"General rule"},{"t":"chapeau","text":"For purposes of applying the provisions of this subtitle which relate to employee fringe benefits\u2014"},{"t":"para","id":"/us/usc/t26/s1372/a/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the S corporation shall be treated as a partnership, and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t26/s1372/a/2","children":[{"t":"num","text":"(2)"},{"t":"content","text":" any 2-percent shareholder of the S corporation shall be treated as a partner of such partnership.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t26/s1372/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"2-percent shareholder defined"},{"t":"content","children":[{"t":"p","text":"For purposes of this section, the term \u201c2-percent shareholder\u201d 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.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}