CCA 200641003: Chief Counsel confirms railroad employer classification

Plain-English summary

The Railroad Retirement Board concluded that a business became an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act. Chief Counsel reviewed the Board's opinion and its supporting information. The memo reached the same conclusion under the Railroad Retirement Tax Act and instructed IRS processing staff to take appropriate action. The public release does not disclose the business's identity or the effective date of its employer status.

Ruling snapshot

• Question: Did the business become an employer under the Railroad Retirement Tax Act?
• Outcome: Advice given; Chief Counsel agreed with the Board's employer classification.
• Key authorities: Railroad Retirement Tax Act; UILC 3231.01-00.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200641003
Release Date: 10/13/2006
CC:TEGE:EOEG:ET1
POSTN-119926-06

UILC: 3231.01-00

date: June 16, 2006
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 --------------------------:

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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 effective ------------------------ -------- Please take the appropriate action regarding this business.

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Janine Cook