26 U.S. 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—
(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.


(Added Pub. L. 97–354, § 2,Oct. 19, 1982, 96 Stat. 1682.)
Prior Provisions

A prior section 1372, added Pub. L. 85–866, title I, § 64(a),Sept. 2, 1958, 72 Stat. 1650; amended Pub. L. 87–29, § 2,May 4, 1961, 75 Stat. 64; Pub. L. 89–389, §§ 2(b)(2), 3 (a),Apr. 14, 1966, 80 Stat. 114; Pub. L. 91–683, § 1(a),Jan. 12, 1971, 84 Stat. 2067; Pub. L. 94–455, title IX, § 902(c)(3), title XIX, §§ 1901(a)(149), 1906(b)(13)(A),Oct. 4, 1976, 90 Stat. 1609, 1788, 1834; Pub. L. 95–600, title III, § 343,Nov. 6, 1978, 92 Stat. 2843; Pub. L. 95–628, § 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 ofPub. 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), ofPub. 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) ofPub. L. 97–354, set out as a note under section 1361 of this title.

The table below lists the classification updates, since Jan. 3, 2012, for this section. Updates to a broader range of sections may be found at the update page for containing chapter, title, etc.

The most recent Classification Table update that we have noticed was Tuesday, August 13, 2013

An empty table indicates that we see no relevant changes listed in the classification tables. If you suspect that our system may be missing something, please double-check with the Office of the Law Revision Counsel.

26 USCDescription of ChangeSession YearPublic LawStatutes at Large


LII has no control over and does not endorse any external Internet site that contains links to or references LII.