Ezel / IRS Rulings / 200148019

CCA 200148019: Business excluded from railroad employer tax coverage

Number
200148019
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Employers v. Not Employers
Topics
Employment taxes
Code sections
§ 3231
Ruling dated
August 22, 2001
Publicly released
November 30, 2001
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2001, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2001
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The Railroad Retirement Board told the IRS that a redacted business was not an employer under the Railroad Retirement Act or the Railroad Unemployment Insurance Act, and its employees' service was not covered by those laws. IRS counsel reviewed the Board's opinion and the information submitted to it. Counsel also concluded that the business was not an employer under the Railroad Retirement Tax Act and its employees' service was not covered. The memorandum directed a service center to take appropriate action and gives no facts explaining the classification.

Ruling snapshot

  • Question: Is the business an employer whose employees are covered under the Railroad Retirement Tax Act?
  • Outcome: Advice given; employer and employee service coverage do not apply.
  • Key authorities: Railroad Retirement Tax Act; Railroad Retirement Act; Railroad Unemployment Insurance Act.

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

AUG 22 2001

Number: 200148019
Release Date: 11/30/2001
CC:TEGE:EOEG:ET1 - COR-127919-01
UILC: 3231.01-00

MEMORANDUM FOR DIRECTOR, INTERNAL REVENUE SERVICE CENTER Kansas City, MO
Attn: Entity Control

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

SUBJECT: CC:TEGE:EOEG:ET1 - COR-127919-01
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 service 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 service performed by its employees are not covered. Please take the appropriate action regarding this business.

Will E. McLeod cc:

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