CCA 200715010: Business is outside railroad retirement employer coverage on submitted facts

Plain-English summary

The Railroad Retirement Board told the IRS that a redacted business was not a covered employer under the Railroad Retirement Act or the Railroad Unemployment Insurance Act. Chief Counsel reviewed the Board's opinion and the information it supplied, then concluded that the business was not a covered employer under the Railroad Retirement Tax Act. The memorandum notes that one Board member dissented because possible indirect control by a rail carrier had not been reviewed further. Chief Counsel warned that developing those facts could change its conclusion.

Ruling snapshot

• Question: Was the redacted business a covered employer under the Railroad Retirement Tax Act?
• Outcome: Advice given; Chief Counsel concluded it was not, subject to possible further facts about indirect rail carrier control.
• 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: 200715010
Release Date: 4/13/2007
CC:TEGE:EOEG:ET1
POSTN-100149-07

UILC: 3231.01-00

date: March 5, 2007
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 a covered 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 a covered employer under the jurisdiction of the Railroad Retirement Tax Act.

However, we do note that a dissenting member of the RRB objected to the decision being rendered without further review of possible indirect control of the company by a rail carrier. Accordingly, we note that a further development of the facts regarding indirect control could change our conclusion. Please take the appropriate action regarding this business.

_____
Janine Cook-