CCA 200844014: Railroad line purchaser became a railroad tax employer

Plain-English summary

The Railroad Retirement Board advised the IRS that a redacted business became an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act on a specified effective date. The IRS reviewed that opinion and the information submitted by the Board. It agreed that the business became an employer for Railroad Retirement Tax Act purposes on the date it acquired the rail line. The memorandum directed the IRS entity unit to take the appropriate action for the business.

Ruling snapshot

• Question: Did the business become an employer subject to the Railroad Retirement Tax Act when it acquired the rail line?
• Outcome: Advice given. The IRS agreed with the Railroad Retirement Board that employer status began on the acquisition date.
• Key authorities: IRC § 3231; Railroad Retirement Act; Railroad Unemployment Insurance Act

Full text (IRS public release)

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Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200844014
Release Date: 10/31/2008
CC:TEGE:EOEG:ET1
POSTN-125603-08

UILC: 3231.01-00

date: July 25, 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 ---------------------------:

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

       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 acquired the
       line. Please take the appropriate action regarding this business.


                                                       _____________________________
                                                               Janine Cook

       cc:

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