CCA 200514014: Business is outside railroad employer coverage; workers' status remains open

Plain-English summary

The Railroad Retirement Board supplied a reconsidered opinion about a business's coverage under the Railroad Retirement Act and Railroad Unemployment Insurance Act. Based on the board's information, Chief Counsel concluded that the business was not a covered employer under the Railroad Retirement Tax Act. The memorandum says the IRS lacked enough information to decide whether the people working for the business were employees of another entity, possibly a rail carrier. The business's identity is redacted in the public release.

Ruling snapshot

• Question: Was the business a covered employer under the Railroad Retirement Tax Act?
• Outcome: Advice given: it was not covered; the workers' possible employment by another entity was unresolved.
• Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200514014
Release Date: 4/8/2005
CC:TEGE:EOEG:ET1:
POSTN-161860-04

UILC: 3231.01-00

date: August 04, 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 reconsideration of a prior opinion that the following business is not a covered 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 a covered employer under the Railroad Retirement Tax Act. We do not have enough information to determine whether any of the workers providing services to ------------------------------------- may be employees of another entity, including an entity that may be a rail carrier.
Please take the appropriate action regarding this business.

_____
Janine Cook
cc--