IRS regulations preclude companies from deducting golden parachute payments made to executives and the executive must pay a 20% excise tax on the golden parachute payments.

Question

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Golden parachute payments are subject to a 20% excise tax for the recipient, and the company cannot deduct these payments as a business expense according to IRS regulations.

IRS Regulations Preclude Companies from Deducting Golden Parachute Payments Made