CCA 200841036: Railroad employer status ended when the business ceased operations and last paid employees

Number

200841036

Outcome

Advice

Document type

Chief Counsel Advice

IRS subject

Employers v. Not Employers

Topics

Employment taxes

Code sections

§ 3231

Ruling dated

July 7, 2008

Publicly released

October 10, 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 ceased being an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act on a redacted date. Chief Counsel reviewed the Board's opinion and agreed that the business ceased being an employer under the Railroad Retirement Tax Act on that date. The date was when the business stopped operating and last compensated employees. The memorandum instructed the IRS processing unit to take the appropriate action for the business.

Ruling snapshot

Question: When did the business cease being an employer for Railroad Retirement Tax Act purposes?
Outcome: Advice given. Employer status ended when the business ceased operations and last compensated employees.
Key authorities: IRC § 3231; Railroad Retirement Act; Railroad Unemployment Insurance Act.

Full text (IRS public release)

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200841036
Release Date: 10/10/2008
CC:TEGE:EOEG:ET1
POSTN-121600-08

UILC: 3231.01-00

date: July 7, 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 an employer under 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 ------------------------------------------------ceased to be an employer under the Railroad Retirement Tax Act effective ---------------------------, the date it ceased operations and last compensated employees. Please take the appropriate action regarding this business.

_____
Janine Cook
cc:

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