CCA 200512009: Business was not a railroad tax employer; worker status unresolved

Plain-English summary

The Railroad Retirement Board told the IRS that a business was not an employer under railroad retirement and unemployment insurance laws. IRS counsel reviewed that opinion and concluded that the business also was not an employer under the Railroad Retirement Tax Act. Counsel said it lacked enough information to decide whether workers serving the business might instead be employees of another entity, including a rail carrier. The memorandum directs the IRS processing office to take appropriate action. The business's identity is redacted.

Ruling snapshot

• Question: Was the business a railroad tax employer, and did its workers have another employer?
• Outcome: Advice: the business was not an employer; the workers' possible status with another entity was unresolved.
• Key authorities: Railroad Retirement Tax Act; IRC § 3231 (index classification).

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200512009
Release Date: 3/25/05
CC:TEGE:EOEG:ET1:
POSTN-161872-04

UILC: 3231.01-00

date: July 23, 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 that the following business is not an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act:

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We have reviewed the opinion of the RRB and, based upon the information submitted to us by the RRB, we also conclude that ---------------------------------is not an employer under the Railroad Retirement Tax Act. We do not have enough information to determine whether any workers performing services for --------------------------------may be employees of another entity, including an entity that may be a rail carrier. Please take the appropriate action regarding this business.

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Janine Cook
cc: