### Question
How does the law define 10-percent shareholder?


### Answer
Under *26 U.S.C. § 6035*, **10-percent shareholder** is defined as:

> any individual who owns directly or indirectly (within the meaning of section 554) 10 percent or more in value of the outstanding stock of a foreign corporation

#### Citation:
  - *26 U.S.C. § 6035*
  - Heading: **Subtitle F-Procedure and Administration > CHAPTER 61-INFORMATION AND RETURNS > Subchapter A-Returns and Records > PART III-INFORMATION RETURNS > Subpart A-Information Concerning Persons Subject to Special Provisions**

