nonallocation year
Defined in 1 place of the United States Code.
The term “nonallocation year” means any plan year of an employee stock ownership plan if, at any time during such plan year—
(i) such plan holds employer securities consisting of stock in an S corporation, and
(ii) disqualified persons own at least 50 percent of the number of shares of stock in the S corporation.
Source
- 2001–present26 U.S.C. § 409Internal Revenue Code · Qualifications for tax credit employee stock ownership plans · for purposes of this section