CCA 200518072: New railroad business became a tax employer

Number

200518072

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Ruling dated

January 4, 2005

Publicly released

May 6, 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.

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 advised the IRS that a business became an employer under the Railroad Retirement Act and Railroad Unemployment Insurance Act. Chief Counsel concluded that it also became an employer under the Railroad Retirement Tax Act as of a redacted effective date. The memorandum assumes that the Board's reference to a sale of the prior company and its assets describes a new entity, rather than the same entity changing its name. The released text redacts the identities and effective date.

Ruling snapshot

Question: Did the business become an employer under the Railroad Retirement Tax Act?
Outcome: Advice given: employer status began on a redacted date, assuming the described sale involved a new entity.
Key authorities: Railroad Retirement Tax Act.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200518072
Release Date: 5/6/2005
CC:TEGE:EOEG:ET1
POSTN-161043-04

UILC: 3231.01-00

date: January 4, 2005
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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---------------------------------------------------------
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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 assume the reference in the RRB opinion that the prior company and its assets were sold to ----------------------------------------------------
--------------------------------------------------------------------------------------------------------------owner is not intended to indicate the same entity merely changed names. Please take the appropriate action regarding this business.

__________
Janine Cook

cc:

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