CCA 200725033: Business ceased to be a covered railroad employer

Number

200725033

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

November 6, 2006

Publicly released

June 22, 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 advised the IRS that a business ceased to be a covered employer under the Railroad Retirement Act and Railroad Unemployment Insurance Act. IRS counsel agreed that the business ceased to be covered by the Railroad Retirement Tax Act around the redacted date when it could no longer conduct railroad operations. Counsel noted that the Board's opinion did not establish when the business last paid compensation for earlier services. The memo asks the processing unit to take appropriate action.

Ruling snapshot

Question: When did the business cease to be a covered employer under the Railroad Retirement Tax Act?
Outcome: Coverage ended around a redacted date, subject to uncertainty about later compensation payments.
Key authorities: Railroad Retirement Tax Act, IRC § 3231

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200725033
Release Date: 6/22/2007

CC:TEGE:EOEG:ET1
POSTN-141840-06

UILC: 3231.01-00

date: November 06, 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 ceased to be a covered employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act on -------------------------:

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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 to be a covered employer under the jurisdiction of the Railroad Retirement Tax Act on or about -------------------------, the date it could no longer conduct railroad operations. However, it is not clear from the opinion when the last payments of compensation for prior services were made. Please take the appropriate action regarding this business.

_____
Janine Cook cc:-

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