Page:United States Statutes at Large Volume 98 Part 1.djvu/635

 PUBLIC LAW 98-369—JULY 18, 1984 "(4) PRESENT VALUE.—Present value shall be determined in accordance with section 1274(b)(2). "(e) REGULATIONS.—The Secretary shall prescribe such regulations as may be necessary or appropriate to carry out the purposes of this section (including regulations for the application of this section in the case of related corporations and in the case of personal service corporations)."

98 STAT. 587

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Ante, p. 538. ,•^,,., ^^

(b) EXCISE TAX ON AMOUNTS RECEIVED.—

(1) IN GENERAL.—Subtitle D (relating to miscellaneous excise taxes) is amended by adding at the end thereof the following new chapter: S^O,<| ^irAfl.

'CHAPTER 46—GOLDEN PARACHUTE PAYMENTS "Sec. 4999. Grolden parachute payments. "SEC. 4999. GOLDEN PARACHUTE PAYMENTS.

26 USC 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 paionent. "(b) EXCESS PARACHUTE PAYMENT DEFINED.—For purposes of this section, the term 'excess parachute payment' has the meaning given to such term by section 280Gr(b).

Ante, p. 585.

"(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. imposed by subtitle A." 26 USC l. (2) DENIAL OF DEDUCTION.—Paragraph (6) of section 275(a) 26 USC 275. (relating to denial of deduction for certain taxes) is amended by striking out "and 44" and inserting in lieu thereof "44, and 46'. (c) FICA TAXES.—Subparagraph (A) of section 3121(v)(2) (relating 97 Stat 122. to treatment of certain nonqualified deferred compensation plans) is 26 USC 3121. amended by adding at the end thereof the following new sentence: "The preceding sentence shall not apply to any excess parachute payment (as defined in section 280Gr(b))." (d) CLERICAL AMENDMENTS.—

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(1) The table of sections for part IX of subchapter B of chapter 1 is amended by adding after the item relating to section 280F the following new item: t

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"Sec. 280G. Golden parachute payments."

(2) The table of chapters for subtitle D is amended by adding at the end thereof the following new item: "CHAPTER 46. Golden parachute payments."

(e) EFFECTIVE DATES.— (1) IN GENERAL.—The amendments made by this section shall apply to payments under agreements entered into or renewed after June 14, 1984, in taxable years ending after such date. (2) SPECIAL RULE FOR CONTRACT AMENDMENTS.—Any contract

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entered into before June 15, 1984, which is amended after June 14, 1984, in any significant relevant aspect shall be treated as a contract entered into after June 14, 1984.

26 USC 280G note.

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