Title 26 — Internal Revenue Code
Chapter 46 — Golden Parachute Payments
§ 4999. Golden parachute payments
Statutory text
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.
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).
Administrative provisions
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.
Other administrative provisions
For purposes of subtitle F, any tax imposed by this section shall be treated as a tax imposed by subtitle A.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Tax Reform Act of 1984
Pub. L. 98–369 div. A title I § 67(b)(1) · 98 Stat. 494
Enacted · 26 U.S.C. § 4999
(Added Pub. L. 98–369, div. A, title I, § 67(b)(1), July 18, 1984, 98 Stat. 587.)
Source evidence
Code source credit
(Added Pub. L. 98–369, div. A, title I, § 67(b)(1), July 18, 1984, 98 Stat. 587.)Enacted provision · exact public law section
(1) In general.— Subtitle D (relating to miscellaneous excise taxes) is amended by adding at the end thereof the following new chapter: “CHAPTER 46— GOLDEN PARACHUTE PAYMENTS “Sec. 4999. Golden parachute payments. “SEC. 4999. GOLDEN PARACHUTE PAYMENTS. “(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 26 USC 6001. 26 USC 1. imposed by subtitle A.”
1 of 1 references resolved to an enrolled provision
Statutory Notes and Related Subsidiaries
Effective Date
Section applicable to payments under agreements entered into or renewed after , in taxable years ending after such date, with contracts entered into before , which are amended after , in any significant relevant aspect to be treated as a contract entered into after , see section 67(e) of Pub. L. 98–369, set out as a note under section 280G of this title.
Credits
(Added Pub. L. 98–369, div. A, title I, § 67(b)(1), , 98 Stat. 587.)