CCA 200641004: Chief Counsel rejects railroad employer classification

Plain-English summary

The Railroad Retirement Board advised the IRS that a business was not an employer under the Railroad Retirement Act or the Railroad Unemployment Insurance Act. Chief Counsel reviewed the Board's opinion and the information it supplied. The memo agreed that the business was not an employer under the Railroad Retirement Tax Act and asked IRS processing staff to take appropriate action. The public release redacts the business's identity and gives no further facts about its operations.

Ruling snapshot

• Question: Was the business an employer under the Railroad Retirement Tax Act?
• Outcome: Advice given; Chief Counsel concluded that it was not.
• Key authorities: Railroad Retirement Tax Act; UILC 3231.01-00.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200641004
Release Date: 10/13/2006
CC:TEGE:EOEG:ET1:
POSTN-161620-04

UILC: 3231.01-00

date: January 28, 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 is
not an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance
Act:

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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 -----------------------------------------is not an employer under the
Railroad Retirement Tax Act. Please take the appropriate action regarding this business.

Janine Cook

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