"Related member" defined
Sec. 8. As used in this chapter, "related member" means a person
that, with respect to the taxpayer during all or any portion of the
taxable year, is any one (1) of the following:
(1) An individual stockholder, or a member of the stockholder's
family enumerated in Section 318 of the Internal Revenue
Code, if the stockholder and the member of the stockholder's
family own directly, indirectly, beneficially, or constructively,
in the aggregate, at least fifty percent (50%) of the value of the
taxpayer's outstanding stock.
(2) A stockholder, or a stockholder's partnership, estate, trust,
or corporation, if the stockholder and the stockholder's
partnership, estate, trust, or corporation owns directly,
indirectly, beneficially, or constructively, in the aggregate, at
least fifty percent (50%) of the value of the taxpayer's
outstanding stock.
(3) A corporation, or a party related to the corporation in a
manner that would require an attribution of stock from the
corporation to the party or from the party to the corporation
under the attribution rules of Section 318 of the Internal
Revenue Code, if the taxpayer owns directly, indirectly,
beneficially, or constructively at least fifty percent (50%) of the
value of the corporation's outstanding stock.
(4) A component member (as defined in Section 1563(b) of the
Internal Revenue Code).
(5) A person to or from whom there is attribution of stock
ownership in accordance with Section 1563(e) of the Internal
Revenue Code except, for purposes of determining whether a
person is a related member under this subdivision, twenty
percent (20%) shall be substituted for five percent (5%)
wherever five percent (5%) appears in Section 1563(e) of the
Internal Revenue Code.
As added by P.L.41-1994, SEC.1.
Last modified: May 28, 2006