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. ยง318, 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.
Structure Code of Alabama
Title 40 - Revenue and Taxation.
Article 6 - Alabama S Corporations.
Section 40-18-160 - General Provisions.
Section 40-18-161 - Determination of Taxable Income.
Section 40-18-162 - Determination of Tax of Shareholder.
Section 40-18-164 - Increase or Decrease in Basis of Shareholder's Stock; Special Rules.
Section 40-18-165 - Distribution of Property Generally.
Section 40-18-167 - Applicability of Chapter.
Section 40-18-168 - "Carryforward" and "Carryback" Provisions.
Section 40-18-169 - Adjustments to Earnings and Profits.
Section 40-18-171 - Determination of Shareholder's Pro Rata Share; "Affected Shareholders" Defined.
Section 40-18-172 - "Post-Termination Transition Period" and "Determination" Defined.
Section 40-18-173 - Interpretation of Article Generally.
Section 40-18-174 - Tax Imposed on Certain Built-in Gains.
Section 40-18-176 - Nonresident Shareholder Composite Returns.