What is Section 280G?

Section 280G of the Internal Revenue Code is designed to prevent excessive remuneration (sometimes known as “golden parachute payments”) to certain officials, highly compensated individuals, and shareholders who own more than 1% of a company (known as “disqualified individuals”).

1. What is Section 280G?
Section 280G of the Internal Revenue Code is
designed to prevent excessive remuneration
(sometimes known as “golden parachute payments”)
to certain officials, highly compensated individuals,
and shareholders who own more than 1% of a
company (known as “disqualified individuals”)

2. When Does Section
280G Apply?
When compensatory
payments are made to
disqualified individuals

3. When Does Section
280G Apply?
When compensatory
payment is contingent
on a change in the
“ownership” or
“effective control”