CCA 200518076: Business was not a railroad tax employer
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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.
Plain-English summary
The Railroad Retirement Board concluded that a business was not an employer under the Railroad Retirement Act or the Railroad Unemployment Insurance Act, and that its employees' service was not covered under those laws. After reviewing the Board's opinion, Chief Counsel likewise concluded that the business was not an employer under the Railroad Retirement Tax Act and that its employees' service was not covered service under that Act. The released memorandum redacts the business's identity and the underlying facts.
Ruling snapshot
- Question: Was the business an employer, and was its employees' work covered, under the Railroad Retirement Tax Act?
- Outcome: Advice given: neither employer status nor covered employee service applied.
- Key authorities: Railroad Retirement Tax Act.
Full text (IRS public release)
Office of Chief Counsel
Memorandum
Internal Revenue Service
Number: 200518076
Release Date: 5/6/2005
CC:TEGE:EOEG:ET1
POSTN-164268-04
UILC: 3231.01-00
date: January 23, 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 is not an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act and service performed by its employees is not covered employee service 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 -----------------------------------is not an employer under the Railroad Retirement Tax Act, and service performed by its employees is not covered employee service under the Act. Please take the appropriate action regarding this business.
Joseph W. Spires cc:
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