CCA 200821033: Merged railroad business ceased to be a covered employer

Number

200821033

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

February 12, 2008

Publicly released

May 23, 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 told the IRS that a business had stopped being a covered employer after a corporate merger. Chief Counsel reviewed the Board's opinion and agreed that the business's status as an employer under the Railroad Retirement Tax Act ended when it ceased to exist as a legal entity. The business name and the effective date are redacted in the public release. The memorandum asks the IRS processing unit to update its records accordingly.

Ruling snapshot

Question: When did the merged business cease to be an employer under the Railroad Retirement Tax Act?
Outcome: Advice given; employer status ended when the business ceased to exist through merger.
Key authorities: Railroad Retirement Tax Act; UILC 3231.01-00.

Full text (IRS public release)

Office of Chief Counsel

Memorandum
Internal Revenue Service

Number: 200821033
Release Date: 5/23/2008
CC:TEGE:EOEG:ET1
POSTN-155487-07

UILC: 3231.01-00

date: February 12, 2008

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 status of the following business as a covered employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act ended on --------------------------:

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

We have reviewed the opinion of the RRB and, based upon the information submitted to us by the RRB, we also conclude that the status of the---------------------------------------------
----------------- as an employer under the Railroad Retirement Tax Act ended on ------------
--------------------------, the last day of the period during which it lost its status as a legal entity and became non-existent as a result of corporate merger.

Please take the appropriate action regarding this business.

_____
Janine Cook

cc:

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