26 U.S.C. § 4999 — Golden parachute payments

Page 3125 TITLE 26—INTERNAL REVENUE CODE § 5000 Section 4994, added Pub. L. 96–223, title I, § 101(a)(1), Apr. 2, 1980, 94 Stat. 241; amended Pub. L. 97–34, title VI, §§ 601(b)(2), 603(b), 604(a)–(c), Aug. 13, 1981, 95 Stat. 337–339; Pub. L. 97–248, title II, § 291, Sept. 3, 1982, 96 Stat. 572; Pub. L. 97–448, title I, § 106(a)(2), (4)(B), (b), title II, § 201(f), Jan. 12, 1983, 96 Stat. 2388, 2390, 2392, re- lated to definitions and special rules with respect to ex- empt oil. Section 4995, added Pub. L. 96–223, title I, § 101(a)(1), Apr. 2, 1980, 94 Stat. 244; amended Pub. L. 97–34, title VI, § 601(b)(3), Aug. 13, 1981, 95 Stat. 337; Pub. L. 97–448, title II, § 201(g), Jan. 12, 1983, 96 Stat. 2393, related to with- holding and depository requirements bearing on the windfall profit tax. Section 4996, added Pub. L. 96–223, title I, § 101(a)(1), Apr. 2, 1980, 94 Stat. 247; amended Pub. L. 97–248, title II, § 284(a), Sept. 3, 1982, 96 Stat. 569; Pub. L. 97–354, § 3(b)(1), Oct. 19, 1982, 96 Stat. 1688; Pub. L. 97–448, title II, § 201(h)(1)(A)–(C), (2), Jan. 12, 1983, 96 Stat. 2393–2395, provided for other definitions and special rules bearing on the windfall profit tax. Section 4997, added Pub. L. 96–223, title I, § 101(a)(1), Apr. 2, 1980, 94 Stat. 249; amended Pub. L. 97–448, title II, § 201(i)(1), Jan. 12, 1983, 96 Stat. 2395, related to records and information, and regulations, bearing on the windfall profit. Section 4998, added Pub. L. 96–223, title I, § 101(a)(1), Apr. 2, 1980, 94 Stat. 250, related to cross references. AMENDMENTS 2017—Subsec. (a)(1). Pub. L. 115–97 substituted ‘‘sec- tion 1(h)(1)(D)’’ for ‘‘section 1(h)(1)(C)’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2017 AMENDMENT Pub. L. 115–97, title I, § 13604(b), Dec. 22, 2017, 131 Stat. 2165, provided that: ‘‘The amendment made by this sec- tion [amending this section] shall apply to corpora- tions first becoming expatriated corporations (as de- fined in section 4985 of the Internal Revenue Code of 1986) after the date of enactment of this Act [Dec. 22, 2017].’’ EFFECTIVE DATE Pub. L. 108–357, title VIII, § 802(d), Oct. 22, 2004, 118 Stat. 1568, provided that: ‘‘The amendments made by this section [enacting this chapter and amending sec- tions 162, 275, and 3121 of this title] shall take effect on March 4, 2003; except that periods before such date shall not be taken into account in applying the periods in subsections (a) and (e)(1) of section 4985 of the Internal Revenue Code of 1986, as added by this section.’’ CHAPTER 46—GOLDEN PARACHUTE PAYMENTS Sec. 4999. Golden parachute payments. § 4999. Golden parachute payments (a) Imposition of tax There is hereby imposed on any person who re- ceives 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 pay- ment. (2) Other administrative provisions For purposes of subtitle F, any tax imposed by this section shall be treated as a tax im- posed by subtitle A. (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 en- tered 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 sec- tion 67(e) of Pub. L. 98–369, set out as a note under sec- tion 280G of this title. CHAPTER 47—CERTAIN GROUP HEALTH PLANS Sec. 5000. Certain group health plans. Editorial Notes AMENDMENTS 1989—Pub. L. 101–239, title VI, § 6202(b)(4)(A), Dec. 19, 1989, 103 Stat. 2233, struck out ‘‘LARGE’’ after ‘‘CER- TAIN’’ in chapter heading and ‘‘large’’ after ‘‘Certain’’ in item 5000. § 5000. Certain group health plans (a) Imposition of tax There is hereby imposed on any employer (in- cluding a self-employed person) or employee or- ganization that contributes to a nonconforming group health plan a tax equal to 25 percent of the employer’s or employee organization’s ex- penses incurred during the calendar year for each group health plan to which the employer or employee organization contributes. (b) Group health plan and large group health plan For purposes of this section— (1) Group health plan The term ‘‘group health plan’’ means a plan (including a self-insured plan) of, or contrib- uted to by, an employer (including a self-em- ployed person) or employee organization to provide health care (directly or otherwise) to the employees, former employees, the em- ployer, others associated or formerly associ- ated with the employer in a business relation- ship, or their families. (2) Large group health plan The term ‘‘large group health plan’’ means a plan of, or contributed to by, an employer or employee organization (including a self-in- sured plan) to provide health care (directly or otherwise) to the employees, former employ- ees, the employer, others associated or for- merly associated with the employer in a busi- ness relationship, or their families, that cov- ers employees of at least one employer that