### Question
How does DISTRIBUTIONS BY CORPORATIONS define related person?


### Answer
Under *26 U.S.C. § 302*, **related person** is defined as:

> any person to whom ownership of stock in the corporation is (at the time of the distribution) attributable under section 318(a)(1) if such stock is further attributable to the entity under section 318(a)(3)

#### Citation:
  - *26 U.S.C. § 302*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter C-Corporate Distributions and Adjustments > PART I-DISTRIBUTIONS BY CORPORATIONS > Subpart A-Effects on Recipients**

