26Title 26The US tax code, read & explained

26 U.S.C. § 4999

§ 4999. Golden parachute payments

130 words · cited by 1 other sections

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No plain-English explainer yet. Below is the official text. Explainers are being added section by section.

History

Added in 1984 by the Deficit Reduction Act of 1984. Last changed July 18, 1984 by the Deficit Reduction Act of 1984.

Every change, newest first (1)
  1. July 18, 1984Deficit Reduction Act of 1984 · added this section

The law as written

Current through Public Law 119-102. Amendment notes omitted.

Structure

  1. (a) Imposition of tax
  2. (b) Excess parachute payment defined
  3. (c) Administrative provisions
(a) Imposition of tax

There is hereby imposed on any person who receives an excess parachute payment a tax equal to 20 percent of the amount of such payment.

(b) Excess parachute payment defined

For purposes of this section, the term “excess parachute payment” has the meaning given to such term by section 280G(b).

(c) Administrative provisions
(1) Withholding

In the case of any excess parachute payment which is wages (within the meaning of section 3401) the amount deducted and withheld under section 3402 shall be increased by the amount of the tax imposed by this section on such payment.

(2) Other administrative provisions

For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.