IRS Publication 15B — Employer's Tax Guide to Fringe Benefits
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“Exception for S corporation shareholders. Don’t treat a 2% shareholder of an S corporation as an em- ployee of the corporation for this purpose. A 2% share- holder is someone who directly or indirectly owns (for any day during the tax year) more than 2% of the corporation’s stock or stock with more than 2% of the voting power.”
This publication supplements Pub. 15, Employer’s Tax Guide; and Pub. 15 -A, Employer’s Supplemental Tax Guide. It contains information for employers on the employment tax treatment of fringe benefits. Comments and suggestions. We welcome your comments about this publication and your suggestions for future editions. You can send us comments through IRS.gov/ FormComments.
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