### Question
What does applicable severance from employment mean?


### Answer
**Applicable severance from employment** has the following meaning in *26 U.S.C. § 280G*:

> 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**

