S corporations are treated in part like C corporations and in part like partnerships with respect to tax deductions for qualifying employee fringe benefits.

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S corporations are required to follow certain tax rules that apply to C corporations, including the deduction of qualifying employee fringe benefits such as health insurance, retirement plans, and certain fringe benefits. However, S corporations are also treated like partnerships in that their income and deductions are passed through to the shareholders and reported on their individual tax returns.

S Corporations Are Treated in Part Like C Corporations and in Part