Ezel / IRS Rulings / 200530025

CCA 200530025: Merged railroad business ceased to be a separate employer

Number
200530025
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Employers v. Not Employers
Topics
Employment taxes
Code sections
§ 3231
Ruling dated
April 25, 2005
Publicly released
July 29, 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 advised the IRS that a redacted business had ceased to be an employer under two railroad benefit laws. IRS Chief Counsel reviewed that opinion and agreed that the business had ceased to be an employer under the Railroad Retirement Tax Act when it apparently merged into its parent company. The parent was itself a covered employer. The memorandum directed the IRS processing unit to take appropriate action; the business name and effective date were redacted.

Ruling snapshot

  • Question: Did the business remain an employer under the Railroad Retirement Tax Act after its apparent merger?
  • Outcome: Advice given: it ceased to be a separate employer on the redacted effective date.
  • Key authorities: Railroad Retirement Tax Act; Railroad Retirement Act; Railroad Unemployment Insurance Act.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200530025
Release Date: 7/29/2005
CC:TEGE:EOEG:ET1
POSTN-117093-05

UILC: 3231.01-00

date: April 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 dated
-----------------------, that the following business ceased to be an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective with the close of business on --------------------------:
----------------------------------------
------------------------------------------------------------
-----------------------------------------------------------
------------------------------------------------------------------------------------
-------------------------------------------------------------------------------
---------------------------------------------------------------------------------
-----------------------------------------------------------------------------

We have reviewed the opinion of the RRB and, based upon the information submitted to us by the RRB, we also conclude that ----------------------------------------. ceased to be an employer under the Railroad Retirement Tax Act on ---------------------------when it apparently merged into its parent company --------------------------------------, a covered employer. Please take the appropriate action regarding this business.

____
Janine Cook

cc:

What does the Code say today, for your facts?

This advice was written for IRS staff and cannot be cited. Ezel checks the current Internal Revenue Code and IRS guidance against your situation, with citations.

Opens in Ezel Pro.

  • Checks the law as it stands today, not only this page
  • Cites every source it relies on, so you can verify it
  • Chat, drafting and research in one workspace