applicable severance from employment
(2) Definitions and special rules For purposes of this subsection: (A) Definitions Any term used in this subsection which is also used in section 162(m)(5) shall have the meaning given such term by such section. (B) Applicable severance from employment The term “applicable severance from employment” means 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. (C) Coordination and other rules (i) In general If a payment which is treated as a parachute payment by reason of this subsection is also a parachute payment determined without regard to this subsection, this subsection shall not apply to such payment. (ii) Regulatory authority The Secretary may prescribe such guidance, rules, or regulations as are necessary— (I) to carry out the purposes of this subsection and the Emergency Economic Stabilization Act of 2008, including the extent to which this subsection applies in the case of any acquisition, merger, or reorganization of an applicable employer, (II) to apply this section and section 4999 in cases where one or more payments with respect to any individual are treated as parachute payments by reason of this subsection, and other payments with respect to such individual are treated as parachute payments under this section without regard to this subsection, and (III) to prevent the avoidance of the application of this section through the mischaracterization of a severance from employment as other than an applicable severance from employment.