Balch v. Commissioner
United States Tax Court
On June 15, 1984, after agreeing to merge with A, J executed severance payment agreements with several of its senior executives, including husband-petitioners (H-Ps). On July 12, 1984, after realizing that the original severance pay agreements were subject to the "golden parachute" provisions of the Deficit Reduction Act of 1984, Pub.
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On June 15, 1984, after agreeing to merge with A, J executed severance payment agreements with several of its senior executives, including husband-petitioners (H-Ps). On July 12, 1984, after realizing that the original severance pay agreements were subject to the "golden parachute" provisions of the Deficit Reduction Act of 1984, Pub. L. 98-369, sec. 67, 98 Stat. 495, 585-587 (secs. 280G and 4999, I.R.C.), J and H-Ps executed amended severance pay agreements which reduced the severance pay received by each H-P to an amount which would not be deemed an "excess parachute payment" for purposes…
1Opinion of the Court
Jacobs, Judge:
These consolidated cases result from respondent’s determination that payments received by Messrs. John N. Balch, Lawrence Howe, Weston R. Christopherson, Robert P. Dorsher, now deceased, and Richard G. Cline (collectively referred to as petitioner husbands), formerly senior executives of Jewel Cos., Inc. (Jewel), in connection with the acquisition of Jewel by American Stores Co. (American Stores) constitute “excess parachute payments” within the purview of section 280G and are thus subject to the golden parachute payments excise tax imposed under section 4999. Under section…
2Cases cited3 opinions
- Dave Fischbein Mfg. Co. v. CommissionerUnited States Tax Court · 1972
- Hyman Smith and Lillian Smith v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Morris Smith and Esther SmithCourt of Appeals for the Seventh Circuit · 1964
- Land of Lincoln Savings & Loan v. Michigan Avenue National BankAppellate Court of Illinois · 1982
3Cited by9 opinions
- Richard G. Cline and Carole J. Cline v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1994
- Square D Co. v. Comm'rUnited States Tax Court · 2003
- Knaggs v. ClarkSupreme Court of Rhode Island · 1996
- Yocum v. United StatesUnited States Court of Federal Claims · 2005
- Szomjassy v. Ohm Corp.District Court, N.D. Georgia · 2001
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