CCA 200513023: Business became a railroad employer; treatment of separate operations unresolved

Plain-English summary

The Railroad Retirement Board concluded that a business became an employer under the Railroad Retirement Act and Railroad Unemployment Insurance Act. Chief Counsel agreed that it became an employer under the Railroad Retirement Tax Act as of the same redacted date. The memorandum says there was not enough information to decide whether employer status should be separated between the business's operations. It asks the IRS processing unit to take appropriate action. The public release redacts the business's identity.

Ruling snapshot

• Question: Did the business become a railroad employer, and should status differ by operation?
• Outcome: Advice given: employer status began; separation among operations was unresolved.
• Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200513023
Release Date: 4/1/2005
CC:TEGE:EOEG:ET1:
POSTN-161822-04

UILC: 3231.01-00

date: November 11, 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 became an 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 also conclude that ------------------------------------------------------------------ ---------------------- became an employer under the Railroad Retirement Tax Act effective - -----------------. We do not have enough information to make a determination whether its employer status should be segregated between its operations. Please take the appropriate action regarding this business

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Janine Cook