26 U.S.C. § 1372 - U.S. Code - Unannotated Title 26. Internal Revenue Code § 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--

(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.