CCA 200140010: Business and employee services fall outside railroad tax coverage

Plain-English summary

The Railroad Retirement Board advised the IRS that a redacted business was not an employer under the Railroad Retirement Act or Railroad Unemployment Insurance Act and that its employees' services were not covered by those laws. Chief Counsel reviewed the Board's opinion and the information submitted to it. It reached the same result under the Railroad Retirement Tax Act: the business was not an employer, and its employees' services were not covered. The memorandum provides no further facts about the business or its workers.

Ruling snapshot

• Question: Was the business an employer, and were its employees' services covered, under railroad retirement tax law?
• Outcome: Advice: neither the business nor the services were covered.
• Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

DEPARTMENT OF THE TREASURY
I N T E R N AL R E V E N U E S E R V I C E WASHINGTON, D.C. 20224

MAY 18 2001

Number: 200140010
Release Date: 10/5/2001
CC:TEGE:EOEG:ET1 - COR-113482-01
UILC: 3231.01-00

MEMORANDUM FOR

FROM: Office of Division Counsel/Associate Chief Counsel
(Tax Exempt and Government Entities)

SUBJECT: CC:TEGE:EOEG:ET1 - COR-113482-01
Railroad Retirement Act Tax Status

In accordance with the coordination procedure established between the Service and the Railroad Retirement Board (RRB), the RRB has provided us with its opinion that the following business is not an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act and that services performed by its employees are not covered under the Acts:

We have reviewed the opinion of the RRB and, based upon the information submitted to the RRB, we also conclude that
is not an employer under the Railroad Retirement Tax Act and that services performed by its employees are not covered. Please take the appropriate action regarding this business.

Will E. McLeod cc: