2-percent shareholder
Defined in 1 place of the United States Code.
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
- 1994–present26 U.S.C. § 1372Internal Revenue Code · Partnership rules to apply for fringe benefit purposes · for purposes of this section