Get more! Sign up for PLANSPONSOR newsletters.
Compliance October 14, 2003
IRS: Golden Parachute Tax Rules Change Effective in August
October 14, 2003 (PLANSPONSOR.com) - New rules
imposing a 20% excise tax on golden parachute payments
actually kicked in this summer, even though they won't fully
go into effect until January 1, 2004, the Internal Revenue
Service (IRS) announced.
Reported by Fred Schneyer
>Clarifying the regulations first put out in August, IRS officials said employers can use an August 4, 2003 effective date even though the rules technically cover a golden parachute payment contingent on a change in corporate ownership or control on or after January 1, 2004, Dow Jones reported.
In addition to the date clarification, the IRS also made one technical change to a section of the rule dealing with cash transfers. The rest of the rule was not affected.
Golden parachute regulations are often triggered when company executives receive compensation packages as a result of a merger or acquisition.
« Employee Stock Options Grants at Life Sciences Companies Reduced by 30%