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 these are true.

Question

Quizplus · Accepted Answer

Golden parachute payments refer to excess severance pay and do not include payments from a qualified profit sharing plan. A deduction is denied to the employer, and a 20% excise tax is imposed on the recipient. Therefore, all of these statements are true with respect to golden parachute payments.

Which Statement Is True with Respect to Golden Parachute Payments