CCA 200736025: Railroad employer status ended when employee payments stopped

Number

200736025

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

June 1, 2007

Publicly released

September 7, 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 informed the IRS that a business had ceased to be an employer under railroad retirement and unemployment laws. Chief Counsel reviewed that opinion and agreed that the business's employer status under the Railroad Retirement Tax Act ended on the redacted date it last paid employees. The memo notes that its former employees were now employed by another covered employer and directs IRS processing staff to take appropriate action.

Ruling snapshot

Question: When did the business stop being a covered railroad employer for tax purposes?
Outcome: Advice. Its status ended when it last paid employees.
Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200736025
Release Date: 9/7/2007
CC:TEGE:EOEG:ET1
POSTN-115723-07

UILC: 3231.01-00

date: June 1, 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 an employer under the jurisdiction of the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective ---------------------
--------
----------------------------------------
-----------------------------------------
---------------------------------------------
---------------------------------------------------------------

We have reviewed the opinion of the RRB and, based upon the information submitted to us by the RRB, we also conclude that -------------------------------------- ceased being an employer under the jurisdiction of the Railroad Retirement Tax Act effective ---------------- ------------, the date on which it last paid employees. We note that the RRB opinion indicates that former employees of -------------------------------------. are now employed by -- --------------------------, another covered employer.

Please take the appropriate action regarding this business.

_____
Janine Cook cc:---------------------

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