CCA 200604030: Railroad employer status began by first employee payment

Number

200604030

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

October 20, 2005

Publicly released

January 27, 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 became an employer under two federal railroad benefit laws. After reviewing the Board's opinion and information, the IRS concluded that the business also became an employer under the Railroad Retirement Tax Act. It said that status began no later than the redacted date when the business first paid employees, and directed its processing unit to act on the conclusion. The business's identity is redacted in the public document.

Ruling snapshot

Question: When did the business become an employer under the Railroad Retirement Tax Act?
Outcome: Advice given: employer status began no later than the date it first compensated employees.
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: 200604030
Release Date: 1/27/2006
CC:TEGE:EOEG:ET1
POSTN-144123-05

UILC: 3231.01-00
date: Oct. 20, 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 on ---------------------:

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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 ---------------------------------------------. became an employer under the Railroad Retirement Tax Act no later than ---------------------, the date it first compensated employees. Please take the appropriate action regarding this business.

_____
Janine Cook
Cc: Mr. Wayne Van Dyck
Internal Revenue Service
210 1st ST., Suite 500
Roanoke, VA 24011-1605

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