IRS finds a business became a railroad tax employer when operations began

Plain-English summary

The Railroad Retirement Board advised the IRS that a business had become an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act. Chief Counsel reviewed the board's opinion and agreed that the business became an employer under the Railroad Retirement Tax Act when it began operations and first paid employees. The business's identity and the effective date are redacted. The IRS directed its processing unit to take appropriate action.

Ruling snapshot

• Question: When did the redacted business become an employer under the Railroad Retirement Tax Act?
• Outcome: Advice given: employer status began when operations and employee compensation began.
• Key authorities: Railroad Retirement Tax Act; Railroad Retirement Act; Railroad Unemployment Insurance Act; IRC § 3231 (index classification).

Full text (IRS public release)

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200833016
Release Date: 8/15/2008
CC:TEGE:EOEG:ET1
POSTN-112468-08

UILC: 3231.01-00

date: May 2, 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 became an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective ----------------------:

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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 ------------------------------------------------------------------ --------------------------------------------------------------------------------------------------became an employer under the Railroad Retirement Tax Act effective ----------------------, the date on which it began operations and first compensated employees. Please take the appropriate action regarding this business.

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Janine Cook
cc: