Ezel / IRS Rulings / 200733022

CCA 200733022: Railroad tax coverage limited to rail transportation workforce

Number
200733022
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Employers v. Not Employers
Topics
Employment taxes
Code sections
§ 3231
Ruling dated
May 14, 2007
Publicly released
August 17, 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.

Currency note: this determination was released in 2007
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
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 reconsidered the status of a business under common control of a rail carrier. IRS Chief Counsel agreed that the business was a covered employer under the Railroad Retirement Tax Act for the redacted period. The coverage applied only to the identifiable part of its workforce engaged in transporting property by rail, including the predecessor employee group described in the memo. Chief Counsel asked the IRS processing unit to act on that conclusion.

Ruling snapshot

  • Question: Which employees of the business were covered by the Railroad Retirement Tax Act?
  • Outcome: Advice that coverage applies only to the specified rail transportation workforce.
  • Key authorities: Railroad Retirement Tax Act; IRC § 3231 (UILC).

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200733022
Release Date: 8/17/2007
CC:TEGE:EOEG:ET1
POSTN-112709-07

UILC: 3231.01-00

date: May 14, 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, upon reconsideration, the following business was under common control of a rail carrier employer engaged in the transportation of property by rail under the Railroad Retirement Act and the Railroad Unemployment Insurance Act for the period -------------- ----------------thru --------------but only with respect to employees of the ------------------------- and its predecessor employee group:

-------------------
-----------------------------------------------------------
------------------------------------------------------------------
---------------------------------------------------------------------

This is a departure from the RRB’s prior opinion that ------------------. was a covered employer only with regard to the finding that there is a segregable business. We have reviewed the opinion of the RRB and, based upon the information submitted to us by the RRB, we also reaffirm our earlier opinion of ----------------------------------------------------- (copy attached) and conclude that ------------------. was a covered employer under the jurisdiction of the Railroad Retirement Tax Act, for the period ----------------through -------- -------------.

POSTN-112709-07
2

However, we also agree that this status applies only with respect to the segregable
portion of the taxpayer’s workforce engaged in the transportation of property by rail.
Please take the appropriate action regarding this business.

____
Janine Cook

Attachment:

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