CCA 200546041: IRS agrees with railroad employer finding and notes uncertain employee start date

Plain-English summary

The Railroad Retirement Board told the IRS that a redacted business had become an employer under the railroad retirement and unemployment insurance laws. IRS Chief Counsel reviewed the Board's opinion and information and agreed that the business had become an employer under the Railroad Retirement Tax Act. The memorandum also relays the Board's information that the business may not have had employees until January 1, 2005. It asks the IRS processing office to take appropriate action. The business's identity and the stated effective date are redacted.

Ruling snapshot

• Question: Should the IRS treat the business as a railroad employer despite uncertainty about when it first had employees?
• Outcome: Advice given: Chief Counsel agreed with the Board's employer status determination.
• Key authorities: Railroad Retirement Tax Act; UILC 3231.01-00.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200546041
Release Date: 11/18/2005
CC:TEGE:EOEG:ET1
POSTN-130459-05

UILC: 3231.01-00

date: August 2, 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 --------------------------:

----------------------------------------------------
--------------------------------------------------
------------------------------------------------------------------------------------------------------------
----------------------------------------------------
------------------------------------------------------------

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 --------------------------.
However, the RRB indicates that it has been informed that -------------------------------------- ---------------- may not have had any employees until January 1, 2005. Please take the appropriate action regarding this business.
_____
Janine Cook
cc: