Fired DXC Technology Executive Sues IRS Over Parachute Payment

A former DXC Technology Co. executive says the government is wrongfully taxing the severance agreement that involved his departure from the company.

Stephen Hilton said in the US District Court for the Eastern District of New York that the IRS has not afforded the proper tax treatment for a settlement agreement that governed his leaving that firm. The company had agreed to pay him a gross sum that was redacted from the complaint that resolved several of his claims against the company, one of which was an “excess parachute payment” that is subject to 20% tax withholding under IRC Section ...