26 U.S. Code § 4960 - Tax on excess tax-exempt organization executive compensation
The employer shall be liable for the tax imposed under subsection (a).
The term “excess parachute payment” means an amount equal to the excess of any parachute payment over the portion of the base amount allocated to such payment.
Rules similar to the rules of 280G(b)(3) shall apply for purposes of determining the base amount.
Rules similar to the rules of paragraphs (3) and (4) of section 280G(d) shall apply.
Remuneration the deduction for which is not allowed by reason of section 162(m) shall not be taken into account for purposes of this section.
The Secretary shall prescribe such regulations as may be necessary to prevent avoidance of the tax under this section, including regulations to prevent avoidance of such tax through the performance of services other than as an employee or by providing compensation through a pass-through or other entity to avoid such tax.
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