280G Golden Parachutes

Internal Revenue Code section 280G defines the tax rules for golden parachute payments. Originally enacted in 1984, the rules provide that if certain individuals receive compensatory payments above a certain threshold in connection with a change in ownership or control of a corporation, then certain of those payments are subject to penalties.  The penalties apply to both the individual receiving the payments as well as to the corporation making such payments.  An individual is subject to a 20% excise tax on the excess parachute payments and the corporation loses a tax deduction on such payments.

This website is solely intended for informational purposes to help provide interested parties easy access to some of the more common technical information on the topic. You should consult with a competent tax advisor in determining the application of 280G to your situation.