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Last Updated: January 8, 2012

-STATUTE

(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.

-SOURCE

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

-MISC1

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.