Ezel / IRS Rulings / 200551022

CCA 200551022: Railroad business ceased to be an employer for tax purposes

Number
200551022
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Employers v. Not Employers
Topics
Employment taxes
Code sections
§ 3231
Ruling dated
September 9, 2005
Publicly released
December 23, 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 a business had ceased to be an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act. Chief Counsel reviewed that opinion and agreed that the business ceased to be an employer under the Railroad Retirement Tax Act as of a redacted date. The memorandum also notes that employees had received compensation and were later transferred to a parent company, with the identifying details redacted. It asks the IRS processing unit to take appropriate action. The public text does not supply the date or enough details to identify the business.

Ruling snapshot

  • Question: Did the business remain an employer under the Railroad Retirement Tax Act?
  • Outcome: Advice given. Chief Counsel concluded that employer status had ended as of the redacted date.
  • Key authorities: Railroad Retirement Tax Act; IRC § 3231 (UILC classification).

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200551022
Release Date: 12/23/2005

CC:TEGE:EOEG:ET1
POSTN-137099-05
UILC: 3231.01-00

date: September 9, 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 ceased to be 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 --------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------ceased to be an employer under the Railroad Retirement Tax Act effective --------------------------. However,

POSTN-137099-05
2

we note that the RRB indicates that employees were compensated on ------------------------------------
---------------------------------------------------------------------------------------------------------------------and subsequently transferred to ----------------------------------------parent company, -----------------------------
------------on ---------------------. Please take the appropriate action regarding this business.

__________
Janine Cook

cc: ----------------------------
---------------------------------------
---------------------------------
-----------------------------------------

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