# 26 U.S.C. § 4999: Golden parachute payments

Source: OLRC release point 119-134 <https://uscode.house.gov/us/usc/119-134/t26/s4999>. Cite pinpoints as 26 U.S.C. § 4999(a)(1).

## § 4999(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.

## § 4999(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).

## § 4999(c) Administrative provisions

**§ 4999(c)(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.

**§ 4999(c)(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.

## Leading cases

- [Yocum v. United States, 66 Fed. Cl. 579 (Fed. Cl. 2005)](https://www.courtlistener.com/opinion/6771083/yocum-v-united-states/)
- [Powell v. Commissioner, 100 T.C. 77 (1993)](https://www.courtlistener.com/opinion/4694867/powell-v-commissioner/)
- [Richard G. Cline and Carole J. Cline v. Commissioner, 34 F.3d 480 (7th Cir. 1994)](https://www.courtlistener.com/opinion/677379/richard-g-cline-and-carole-j-cline-v-commissioner-of-internal-revenue/)

## Connections

Cites: § 280G Golden parachute payments; § 3401 Definitions; § 3402 Income tax collected at source

Cited by: § 280G Golden parachute payments

## Amendments

- 1984-07-18: [Pub. L. 98-369](/26/act/98-369.md), 98 Stat. 587