{"data":{"id":"us/26-u.s.c.-1372","jurisdiction":"us","citation":"26 U.S.C. § 1372","heading":"Partnership rules to apply for fringe benefit purposes","body":"(a) General ruleFor 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 definedFor 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.","path":["Title 26—INTERNAL REVENUE CODE","CHAPTER 1—NORMAL TAXES AND SURTAXES"],"source_url":"https://uscode.house.gov/download/releasepoints/us/pl/119/103/xml_usc26@119-103.zip","current_through":"Public Law 119-103 (09/02/2026)","vintage":"","retrieved_at":"2026-09-10T05:58:25Z","sha256":"0b2449d5b7a8601136fff8f3a74e62ca0326dfa8062f9fd9ca8c05e4a7f26e6f","source_id":"us","stale":false,"prev":"us/26-u.s.c.-1371","next":"us/26-u.s.c.-1373"},"notice":"GroundRules: Original legal text. Not legal advice."}