CCA 200719010: Business no longer covered by railroad retirement tax

Plain-English summary

The Railroad Retirement Board advised the IRS that a business had ceased to be a covered employer under the railroad retirement and unemployment insurance laws. The IRS reviewed the board's opinion and agreed that the business was no longer a covered employer for Railroad Retirement Tax Act purposes as of the redacted date. It also noted that the business appeared to be a single-member entity that might have been disregarded for federal tax purposes. Because it did not know whether the business or its owner had filed the required employment tax returns, the IRS asked the receiving office to take appropriate action.

Ruling snapshot

• Question: Had the business ceased to be a covered employer for Railroad Retirement Tax Act purposes?
• Outcome: Advice given; the IRS agreed with the Railroad Retirement Board's conclusion.
• 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: 200719010
Release Date: 5/11/2007
CC:TEGE:EOEG:ET1
POSTN-103494-07

UILC: 3231.01-00

date: March 21, 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 ceased being a covered 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 the ------------------------------------------------------------- ceased being a covered employer under the jurisdiction of the Railroad Retirement Tax Act effective ---------------------. We note that ----------- appears to have been a single member ------and may have been disregarded as a separate entity for federal tax purposes. It is unknown, therefore, if ---------- or its owner has filed the required employment tax returns. Please take the appropriate action regarding this business.

_____
Janine Cook