CCA 200519052: Railroad employer status depends on separate entity treatment

Number

200519052

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

January 25, 2005

Publicly released

May 13, 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 told the IRS that a redacted business became an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act on a redacted date. Chief Counsel agreed that the business became an employer under the Railroad Retirement Tax Act on that date, assuming it was not disregarded as a separate entity for federal tax purposes. The memorandum does not resolve the separate entity question or describe the business. Counsel asked the IRS processing office to take appropriate action.

Ruling snapshot

Question: Did the business become an employer under the Railroad Retirement Tax Act?
Outcome: Advice: yes, if the business was treated as a separate entity for federal tax purposes.
Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200519052
Release Date: 5/13/2005

CC:TEGE:EOEG:ET1
POSTN-161619-04
UILC: 3231.01-00

date: January 25, 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 on ----------------:

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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 the -------------------------------------------------------------
-------became an employer under the Railroad Retirement Tax Act on ----------------, assuming that it is not disregarded as a separate entity for federal tax purposes. Please take the appropriate action regarding this business.

_____
Janine Cook

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