### Question
How does the law define applicable severance from employment?


### Answer
Under *26 U.S.C. § 280G*, **applicable severance from employment** is defined as:

> any severance from employment of a covered executive—


(i) by reason of an involuntary termination of the executive by the employer, or


(ii) in connection with any bankruptcy, liquidation, or receivership of the employer

#### Citation:
  - *26 U.S.C. § 280G*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IX-ITEMS NOT DEDUCTIBLE**

