### Question
How is the "excess parachute payment" defined?


### Answer
The term **excess parachute payment** is defined in *26 U.S.C. § 280G* as follows -

> an amount equal to the excess of any parachute payment over the portion of the base amount allocated to such payment

#### 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**

