CCA 200845045: Successor became a railroad employer when operations began

Plain-English summary

The Railroad Retirement Board advised the IRS about employer status for a successor business and its predecessor. Chief Counsel concluded that the successor became an employer under the Railroad Retirement Tax Act when it began operations and first paid employees. The predecessor ceased to be an employer on a separate redacted date. The successor continued reporting under the predecessor’s Railroad Retirement Board account number, and the IRS noted uncertainty about whether it was also using the predecessor’s employer identification number.

Ruling snapshot

• Question: When did the successor begin, and the predecessor cease, Railroad Retirement Tax Act employer status?
• Outcome: Advice given. The successor’s status began with operations and employee compensation, while the predecessor’s ended on the stated date.
• Key authorities: Railroad Retirement Tax Act; IRC § 3231

Full text (IRS public release)

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200845045
Release Date: 11/7/2008
CC:TEGE:EOEG:ET1
POSTN-125606-08

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 ----------------------------------:

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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 ---------------------------------------d/b/a as --------------- ------------------------------------------ became an employer under the Railroad Retirement Tax Act effective ----------------------, the date it began operations and first compensated employees. We note that the RRB indicated the entity is continuing to file reports with the RRB under the same “B.A. Number” as its predecessor, ------------------------------------- -----------. We do not know whether it is also using, properly or improperly, such entity’s EIN, ----------------.
POSTN-125606-08
2

Such entity ceased being an employer under the Railroad Retirement Tax Act effective -
---------------------------. Please take the appropriate action regarding this business.

_____
Janine Cook

cc: