26 U.S.C. § 1372 — Partnership rules to apply for fringe benefit purposes

For purposes of applying the provisions of this subtitle which relate to employee^* fringe benefits—

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.