Alabama § 40-18-170 Circumstances Under Which Corporation Treated as Partnership; “Two-Percent Shareholder” Defined

Alabama Statutes

§ 40-18-170 — Circumstances Under Which Corporation Treated as Partnership; “Two-Percent Shareholder” Defined

Alabama § 40-18-170

Title 40Revenue and Taxation

Ch. 18Income Taxes

Art. 6Alabama S Corporations

This text of Alabama § 40-18-170 (Circumstances Under Which Corporation Treated as Partnership; “Two-Percent Shareholder” Defined) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 40-18-170 (2026).

Text

For purposes of applying the provisions of this chapter which relate to employee fringe benefits, the Alabama S corporation shall be treated as a partnership, and any two-percent shareholder of the Alabama S corporation shall be treated as a partner of such partnership. The term “two-percent shareholder” means any person who owns, or is considered as owning in accordance with 26 U.S.C. §318, as in effect from time to time, on any day during the taxable year of the Alabama S corporation more than two percent of the outstanding stock of such corporation or stock possessing more than two percent of the total combined voting power of all stock of such corporation.

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For purposes of applying the provisions of this chapter which relate to employee fringe benefits, the Alabama S corporation shall be treated as a partnership, and any two-percent shareholder of the Alabama S corporation shall be treated as a partner of such partnership. The term “two-percent shareholder” means any person who owns, or is considered as owning in accordance with 26 U.S.C. §318, as in effect from time to time, on any day during the taxable year of the Alabama S corporation more than two percent of the outstanding stock of such corporation or stock possessing more than two percent of the total combined voting power of all stock of such corporation.