2025-21092Notice

Agency Information Collection Activities; Comment Request on Golden Parachute Payments

Published Date: 11/26/2025

Notice

Summary

The IRS wants your thoughts on how it collects info about golden parachute payments—those big payouts to certain executives when they leave a company. This review aims to make the process clearer and less of a hassle for businesses and individuals involved. If you have ideas or concerns, send them in by January 26, 2026, so the IRS can keep things fair and efficient without extra costs or delays.

Analyzed Economic Effects

3 provisions identified: 1 benefits, 2 costs, 0 mixed.

Paperwork Burden on For‑Profit Businesses

The IRS is continuing an information collection on golden parachute payments that the notice says affects business or other for‑profit organizations. The agency estimates 800 respondents, about 15 hours per respondent, for an estimated total of 12,000 annual burden hours.

Denial of Deduction for Excess Parachutes

The regulations described deny a tax deduction for excess parachute payments. A parachute payment is defined as compensation to a disqualified individual that is contingent on a change in ownership or control of a corporation.

Small Corporation Exemption Conditions

The notice states certain payments, including payments from a small corporation, are exempt from the definition of parachute payment if specific requirements are met such as shareholder approval and disclosure requirements. Meeting those requirements means the payments are not treated as parachute payments under the regulations.

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Key Dates

Published Date
Comments Due
11/26/2025
1/26/2026

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Internal Revenue Service
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