CCA 200513025: Two businesses became railroad employers and one did not

Plain-English summary

The Railroad Retirement Board reported that two businesses became employers under the Railroad Retirement Act and Railroad Unemployment Insurance Act, while a third was not an employer under those acts. Chief Counsel reviewed the board's opinion and reached the same conclusions for Railroad Retirement Tax Act purposes. The effective date for the two businesses and all three identities are redacted in the public release. The memorandum asks the IRS processing unit to take appropriate action.

Ruling snapshot

• Question: Which of the three businesses were employers under the Railroad Retirement Tax Act?
• Outcome: Advice given: two became employers on a redacted date; one was not an employer.
• Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200513025
Release Date: 4/1/2005
CC:TEGE:EOEG:ET1:
POSTN-161886-04
UILC: 3231.01-00

date: June 30, 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 two of the following businesses became employers under the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective ------------------, and that one business is not an employer under the Acts:

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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 ------------------------------------------------------------------ -------------------------------------------------------------------------------------------------and -------------- ---------------------------------------------------became employers under the Railroad Retirement Tax Act effective ------------------. We also conclude that --------------is not an employer under the Act. Please take the appropriate action regarding these businesses.

_____
Janine Cook