CCA 200808028: Business treated as a railroad employer after taking over operations

Number

200808028

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

November 20, 2007

Publicly released

February 22, 2008

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 2008, 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 redacted business had become a rail carrier employer under railroad retirement and unemployment laws. IRS counsel reviewed that opinion and the information the Board supplied. Counsel concluded that the business also became an employer under the Railroad Retirement Tax Act when it took over operations and first paid its employees. The effective date and identifying facts were redacted, and counsel asked the IRS processing unit to update its records.

Ruling snapshot

Question: When did the business become an employer under the Railroad Retirement Tax Act?
Outcome: Advice that employer status began when it took over operations and first compensated employees.
Key authorities: Railroad Retirement Tax Act; IRC § 3231.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200808028
Release Date: 2/22/2008
CC:TEGE:EOEG:ET1
POSTN-142041-07

UILC: 3231.01-00

date: November 20, 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 became a rail carrier 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 -----------------------------. became an employer under the Railroad Retirement Tax Act, effective ----------------------, the date it

POSTN-142041-07
2

took over operations of the -----------------------------------------and first compensated its
employees.

Please take the appropriate action regarding this business.

_____
Janine Cook

cc: ------------------------------
----------------------------------------
---------------------------------
--------------------
-------------------------------------

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