CCA 200832023: Railroad business no longer treated as covered employer

Number

200832023

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

May 6, 2008

Publicly released

August 8, 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 under the Railroad Retirement Act and Railroad Unemployment Insurance Act. Chief Counsel reviewed the Board's opinion and agreed, based on the information the Board submitted. The business had ceased operations by abandonment. The memo asks IRS submission processing staff to take appropriate action, but the released document redacts the business's identity and the relevant dates.

Ruling snapshot

Question: Had a railroad business ceased to be a covered employer after abandoning operations?
Outcome: Advice given; Chief Counsel agreed with the Railroad Retirement Board's conclusion.
Key authorities: Railroad Retirement Act; Railroad Unemployment Insurance Act; IRC § 3231 (UILC classification).

Full text (IRS public release)

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200832023
Release Date: 8/8/2008
CC:TEGE:EOEG:ET1
POSTN-112474-08

UILC: 3231.01-00

date: May 6, 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 following business ceased to be a covered employer, under the jurisdiction of the Railroad Retirement Act and the Railroad Unemployment Insurance Act, 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 ----------------------------------ceased to be a covered employer under the jurisdiction of the Railroad Retirement Act, sometime in ---- -------, no later than ---------------------------, due to its cessation of operations by abandonment.

POSTN-112474-08
2

Please take the appropriate action regarding this business.

_____
Janine Cook

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

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