CCA 200745019: Acquired business falls under railroad retirement tax rules

Plain-English summary

This Chief Counsel memorandum corrects an earlier memorandum about a business acquired by a covered railroad employer. The Railroad Retirement Board concluded that the business became an employer under the Railroad Retirement Act and Railroad Unemployment Insurance Act on the acquisition date. After reviewing the Board's opinion and information, IRS Chief Counsel reached the same conclusion under the Railroad Retirement Tax Act. The business and effective date are redacted.

Ruling snapshot

• Question: Did the acquired business become an employer under the Railroad Retirement Tax Act?
• Outcome: Yes, effective on the redacted acquisition date.
• Key authorities: Railroad Retirement Tax Act; Railroad Retirement Board opinion.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200745019
Release Date: 11/9/2007
CC:TEGE:EOEG:ET1
POSTN-119985-07

UILC: 3231.01-00

date: August 8, 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

This is a correction to our memorandum dated June 27, 2007.

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 held to be an employer under the jurisdiction of the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective --------------------- -------, the date of its acquisition by a covered employer:

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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 held to be an employer under the jurisdiction of the Railroad Retirement Tax Act effective ------------ ------------.

Please take the appropriate action regarding this business.

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