Ezel / IRS Rulings / 200519059

CCA 200519059: Railroad tax coverage ends for merged company

Number
200519059
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Employers v. Not Employers
Topics
Employment taxes
Code sections
§ 3231
Ruling dated
January 30, 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.

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 told the IRS that railroad retirement coverage ended for a redacted company on a redacted date. Chief Counsel agreed that coverage under the Railroad Retirement Tax Act ended when the company merged into another entity and ceased to exist. The memorandum says the entity into which it merged remained an employer under the Act. Counsel asked the IRS processing office to take appropriate action.

Ruling snapshot

  • Question: Did Railroad Retirement Tax Act coverage end for the company that merged out of existence?
  • Outcome: Advice: yes, on the merger date; the surviving entity remained an employer.
  • Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200519059
Release Date: 5/13/2005

CC:TEGE:EOEG:ET1
POSTN-165078-04
UILC: 3231.01-00

date: January 30, 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 coverage terminated under the jurisdiction of the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective ----------------------for the following company:

-------------------------------------
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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 coverage terminated under the jurisdiction of the Railroad Retirement Tax Act (Act) for -----------------------------------------. effective
POSTN-165078-04
2

----------------------, the date upon which it merged into the -----------------------------------------
----- and, thereby cease to exist. The --------------------------------------------. remains an
employer under the Act. Please take the appropriate action regarding this business.

_____
Janine Cook

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