
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4999]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                 Subtitle D--Miscellaneous Excise Taxes
 
                  CHAPTER 46--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 imposed by subtitle A.

(Added Pub. L. 98-369, div. A, title I, Sec. 67(b)(1), July 18, 1984, 98 
Stat. 587.)


                             Effective Date

    Section applicable to payments under agreements entered into or 
renewed after June 14, 1984, in taxable years ending after such date, 
with contracts entered into before June 15, 1984, which are amended 
after June 14, 1984, in any significant relevant aspect to be treated as 
a contract entered into after June 14, 1984, see section 67(e) of Pub. 
L. 98-369, set out as a note under section 280G of this title.
