### Question
How is the term non-owner employee defined?


### Answer
The term **non-owner employee** is defined in *26 U.S.C. § 465* as the following:

> any employee who does not own, at any time during the taxable year, more than 5 percent in value of the outstanding stock of the taxpayer

#### Citation:
  - *26 U.S.C. § 465*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter E-Accounting Periods and Methods of Accounting > PART II-METHODS OF ACCOUNTING > Subpart C-Taxable Year for Which Deductions Taken**

