CCA 200712031: Business classified as railroad employer for tax purposes

Number

200712031

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

December 21, 2006

Publicly released

March 23, 2007

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 2007, 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 gave the IRS its opinion that a business had become an employer under the railroad retirement and unemployment insurance laws. Chief Counsel reviewed the board's opinion and, based on the information the board supplied, also concluded that the business became an employer under the Railroad Retirement Tax Act on the redacted effective date. The memo says the business first paid its three employees on that date. It asks the IRS entity processing office to take the appropriate action, without calculating a tax amount.

Ruling snapshot

Question: Did the business become an employer under the Railroad Retirement Tax Act?
Outcome: Advice given: yes, effective on the date redacted from the public release.
Key authorities: Railroad Retirement Tax Act; Railroad Retirement Board opinion.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200712031
Release Date: 3/23/2007
CC:TEGE:EOEG:ET2
POSTN-151222-06

UILC: 3231.01-00

date: December 21, 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 dated ------------------------, 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 -------------------------.
According to the opinion, ------------------------------------------------first compensated its three employees on that date. Please take the appropriate action regarding this business.

____
Janine Cook-

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