Related or Subordinate Party [Internal Revenue] Law and Legal Definition

According to 26 USCS § 672 [Title 26. Internal Revenue Code; Subtitle A. Income Taxes; Chapter 1. Normal Taxes And Surtaxes; Subchapter J. Estates, Trusts, Beneficiaries, And Decedents; Part I. Estates, Trusts, and Beneficiaries; Subpart E. Grantors and Others Treated as Substantial Owners], related or subordinate party means “any nonadverse party who is--

(1) the grantor's spouse if living with the grantor;

(2) any one of the following: The grantor's father, mother, issue, brother or sister; an employee of the grantor; a corporation or any employee of a corporation in which the stock holdings of the grantor and the trust are significant from the viewpoint of voting control; a subordinate employee of a corporation in which the grantor is an executive.”