Internal Revenue Code · 26 U.S.C.
§ 1372. Partnership rules to apply for fringe benefit purposes
Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).
Cite as 26 U.S.C. § 1372
At a glance
Read from the text, the source credit and the official notes. Not part of the law.
- Status
- In force
- Added
- October 19, 1982 by Pub. L. 97–354
- Length
- 2 subsections · 127 words · about 1 min to read
- Defines
- 1 term
- Cross-references
- cites 1; cited by 3 Code sections and 12 other regulations
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.)
Terms defined here
Where the text says “the term … means”. Select a term to jump to its definition.
Cross-references
Computed from the citations in the text of Title 26 and 26 CFR.
This section cites 1 other section
Cited by 3 Code sections
- § 45R(e)(1)(A)(ii) Employee health insurance expenses of small employers
- § 162(l)(5) Trade or business expenses
- § 1379(a) Transitional rules on enactment
Cited in 12 regulations not issued under it
- § 1.47-4 Electing small business corporation.
- § 1.50A-5 Electing small business corporations.
- § 1.58-4 Electing small business corporations.
- § 1.132-9 Qualified transportation fringes.
- § 1.274-12 Limitation on deductions for certain food or beverage expenses paid or incurred after December 31, 2017.
- § 1.274-13 Disallowance of deductions for certain qualified transportation fringe expenditures.
- § 1.1362-2 Termination of election.
- § 1.1374-1A Tax imposed on certain capital gains.
- § 1.6037-1 Return of electing small business corporation.
- § 18.1379-1 Transitional rules on enactment.
- § 301.9100-4T Time and manner of making certain elections under the Economic Recovery Tax Act of 1981.
- § 301.9100-19T Election relating to passive investment income of electing small business corporations.
Amendment history
From the source credit and the official notes, newest first.
- Added by Pub. L. 97–354
Where it sits in the Code
- Subtitle A Income Taxes
- Chapter 1 NORMAL TAXES AND SURTAXES
- Subchapter S Tax Treatment of S Corporations and Their Shareholders
- Part III SPECIAL RULES
Nearby sections
- § 1371 Coordination with subchapter C
- § 1372 Partnership rules to apply for fringe benefit purposes
- § 1373 Foreign income
- § 1374 Tax imposed on certain built-in gains
- § 1375 Tax imposed when passive investment income of corporation having accumulated earnings and profits exceeds 25 percent of gross receipts
Official notes
Show the Law Revision Counsel's notes (amendments, effective dates)
Editorial Notes
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 of Pub. L. 97–354.
Statutory Notes and Related Subsidiaries
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), of Pub. 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) of Pub. L. 97–354, set out as a note under section 1361 of this title.