affected shareholder

(3) Election to distribute earnings first (A) In general An S corporation may, with the consent of all of its affected shareholders, elect to have paragraph (1) of subsection (c) not apply to all distributions made during the taxable year for which the election is made. (B) Affected shareholder For purposes of subparagraph (A), the term “affected shareholder” means any shareholder to whom a distribution is made by the S corporation during the taxable year.


26 USC § 1368(e)(3)

Scoping language

For purposes of this section
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