2-percent shareholder

(b)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.

Source

26 USC § 1372(b)


Scoping language

For purposes of this section
Is this correct? or