Ezel / IRS Rulings / 200513026

CCA 200513026: Two businesses are outside railroad employer coverage; worker service remains unresolved

Number
200513026
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Employers v. Not Employers
Topics
Employment taxes
Code sections
§ 3231
Ruling dated
June 7, 2004
Publicly released
April 1, 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 concluded that two businesses were not employers under the Railroad Retirement Act and Railroad Unemployment Insurance Act. After reviewing its opinion, Chief Counsel also concluded that they were not employers under the Railroad Retirement Tax Act. The memorandum reserved a separate question: given a dissent to the board's opinion, the available information did not establish whether service performed by employees of one redacted business was covered employee service under the tax act. It asked the IRS processing unit to take appropriate action.

Ruling snapshot

  • Question: Were the businesses railroad employers, and was service by certain workers covered?
  • Outcome: Advice given: the businesses were not employers; coverage of the specified employee service was unresolved.
  • Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200513026
Release Date: 4/1/2005
CC:TEGE:EOEG:ET1:
POSTN-161891-04

UILC: 3231.01-00

date: June 7, 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 businesses are not employers 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 ------------------------------------------------------------------ -------------------- and ----------------------------are not employers under the Railroad Retirement Tax Act (Act). However, we do not have enough information, particularly in light of the dissent, to determine whether service performed by employees of -------------- -----------------------should be viewed as covered employee service under the Act. Please take the appropriate action regarding these businesses.

_____
Janine Cook-

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