Internal Revenue Code:Sec. 1372. Partnership rules to apply for fringe benefit purposes

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle A - Income Taxes
       CHAPTER 1 - NORMAL TAXES AND SURTAXES
        Subchapter S - Tax Treatment of S Corporations and Their
              Shareholders
          PART III - SPECIAL RULES
        

Statute

    Sec. 1372. Partnership rules to apply for fringe benefit purposes
 
    (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.
 

Sources

    (Added Pub. L. 97-354, Sec. 2, Oct. 19, 1982, 96 Stat. 1682.)
 

Miscellaneous

                              PRIOR PROVISIONS
      A prior section 1372, added Pub. L. 85-866, title I, Sec. 64(a),
    Sept. 2, 1958, 72 Stat. 1650; amended Pub. L. 87-29, Sec. 2, May 4,
    1961, 75 Stat. 64; Pub. L. 89-389, Sec. 2(b)(2), 3(a), Apr. 14,
    1966, 80 Stat. 114; Pub. L. 91-683, Sec. 1(a), Jan. 12, 1971, 84
    Stat. 2067; Pub. L. 94-455, title IX, Sec. 902(c)(3), title XIX,
    Sec. 1901(a)(149), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1609,
    1788, 1834; Pub. L. 95-600, title III, Sec. 343, Nov. 6, 1978, 92
    Stat. 2843; Pub. L. 95-628, Sec. 5(a), (b), Nov. 10, 1978, 92 Stat.
    3628, related to manner, effect, termination, etc., of an election
    not to be subject to taxes imposed under this chapter, prior to the
    general revision of this subchapter by section 2 of Pub. L. 97-354.
                               EFFECTIVE DATE
      Section applicable to taxable years beginning after Dec. 31,
    1982, except that in the case of a taxable year beginning during
    1982, sections 1362(d)(3), 1366(f)(3), and 1375 of this title shall
    apply and subsec. (e)(5) of this section as in effect on the day
    before Oct. 19, 1982, shall not apply, see section 6(a), (b)(3), of
    Pub. L. 97-354, set out as a note under section 1361 of this
    title.  For additional provisions relating to the treatment of
    existing fringe benefit plans and the application of this section,
    see section 6(d) of Pub. L. 97-354, set out as a note under section
    1361 of this title.
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in section 162 of this title.