Which statement is true with respect to golden parachute payments?
A)Refers to excess severance pay.
B)Does not include payments from a qualified profit sharing plan.
C)A deduction is denied to the employer.
D)A 20% excise tax is imposed on the recipient.
E)All of the above are true.

Question

Quizplus · Accepted Answer

Golden parachute payments refer to compensation packages given to executives upon termination, often due to a merger or acquisition. These payments can be excessive, and certain tax rules apply: they do not include qualified plan payments, the employer cannot deduct them, and a 20% excise tax is imposed on the recipient.

Which Statement Is True with Respect to Golden Parachute Payments