CCA 200141001: Two businesses gain railroad employer status; a third does not

Plain-English summary

The Railroad Retirement Board told the IRS that two redacted businesses became employers under the Railroad Retirement Act and Railroad Unemployment Insurance Act on October 8, 1999. It found that a third business was not an employer under those Acts. IRS counsel reviewed the Board's opinion and reached the same conclusions under the Railroad Retirement Tax Act. The memorandum provides no underlying facts about the three businesses.

Ruling snapshot

• Question: Which of the three businesses were employers under the Railroad Retirement Tax Act?
• Outcome: Advice given: two became employers October 8, 1999; the third was not an employer.
• Key authorities: 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

MAR 30 2001

Number: 200141001
Release Date: 10/12/2001
CC:TEGE:EOEG:ET1 - COR-102362-01
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-102362-01
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
and
became employers under
the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective October 8, 1999. The RRB also held that
is not an employer under the Acts. All three businesses have the following address:

We have reviewed the opinion of the RRB and, based upon the information submitted to the RRB, we also conclude that
and
became employers under the Railroad Retirement Tax Act effective October 8, 1999. We also conclude that is not an employer under the Act. Please take the appropriate action regarding these businesses.

Will E. McLeod cc: