CCA 200601028: Railroad business ceased to be a tax act employer

Number

200601028

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

September 30, 2005

Publicly released

January 6, 2006

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 2006, 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 business had ceased to be an employer under the railroad retirement and unemployment statutes. Chief Counsel reviewed the Board's opinion and the information it supplied, then reached the same conclusion for the Railroad Retirement Tax Act. The effective date and business name are redacted. The memorandum directs the IRS processing unit to take appropriate action and notes that payroll services, and perhaps employees, moved to a new parent company.

Ruling snapshot

Question: Did the business cease to be an employer under the Railroad Retirement Tax Act?
Outcome: Advice given; Chief Counsel concluded that it had ceased to be an employer on the redacted 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: 200601028
Release Date: 1/6/2006
CC:TEGE:EOEG:ET1
POSTN-140677-05

UILC: 3231.01-00

date: September 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 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 -------------------------. At such time, its unified payroll services and perhaps its employees were transferred to its new parent company, ---------------------
--------------------at the same address provided above. Please take the appropriate action regarding this business.

__________
Janine Cook

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