If a Section 280G analysis determines there are excess parachute payments paid or accrued as a result of a change in control, two provisions go into effect.
Section 280G disallows the deduction to the corporation for any excess parachute payment paid or accrued
The recipient of any excess parachute payments will be subject to a 20% excise tax on the amount of such payments under IRC Section 4999 in addition to any regular income tax or withholding