Ezel / IRS Rulings / 200509021

CCA 200509021: IRS agrees that business became a rail carrier employer

Number
200509021
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Employers v. Not Employers
Topics
Employment taxes
Code sections
§ 3231
Ruling dated
October 20, 2004
Publicly released
March 4, 2005
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 2005, 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 2005
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 business had become a rail carrier employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act. After reviewing the Board's opinion and submitted information, Chief Counsel agreed that the business became a rail carrier employer under the Railroad Retirement Tax Act. The memorandum notes that the business's representative said it had no employees and asks the IRS processing office to take appropriate action. The employer's identity and effective date were redacted from the public release.

Ruling snapshot

  • Question: Should the IRS treat the business as a rail carrier employer under the Railroad Retirement Tax Act?
  • Outcome: Advice: the IRS agreed with the Railroad Retirement Board's employer status determination.
  • Key authorities: Railroad Retirement Tax Act (IRC § 3231); Railroad Retirement Act; Railroad Unemployment Insurance Act.

Full text (IRS public release)

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200509021
Release Date: 3/4/2005
CC:TEGE:EOEG:ET1
POSTN-160147-04

UILC: 3231.01-00

date: October 20, 2004
to: Director, Submission Processing
Cincinnati, OH
Attn: Entity Unit

from: Office of Division Counsel/Associate Chief Counsel (Tax Exempt & Government Entities)

subject: Railroad Retirement Tax Act 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 dated ----------------------------, that the following business became a rail carrier employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective ---- -------------------:

----------------------------------------
-----------------------------------------------------------------------
---------------------------------------------------------
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We have reviewed the opinion of the RRB and, based upon the information submitted to us by the RRB, we agree with the RRB’s determination that ------------------------------------- became a rail carrier employer under the Railroad Retirement Tax Act on ------------------- --------------------------------------------------------------------------------------------------------------------.
However, we note that the submitted facts indicate that the entity’s representative states the entity has no employees. Please take the appropriate action regarding this business.

____
Janine Cook cc:

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