26 USC § 4999 - Golden parachute payments

---
identifier: "/us/usc/t26/s4999"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 4999 - Golden parachute payments"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "4999"
section_name: "Golden parachute payments"
chapter_number: 46
chapter_name: "GOLDEN PARACHUTE PAYMENTS"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Added Pub. L. 98–369, div. A, title I, § 67(b)(1), July 18, 1984, 98 Stat. 587.)"
---


# § 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.

---

**Source Credit**: (Added Pub. L. 98–369, div. A, title I, § 67(b)(1), July 18, 1984, 98 Stat. 587.)

## Statutory Notes and Related Subsidiaries

### Effective Date

Section applicable to payments under agreements entered into or renewed after , in taxable years ending after such date, with contracts entered into before , which are amended after , in any significant relevant aspect to be treated as a contract entered into after , see , set out as a note under .