Ezel / IRS Rulings / 1027051
Chief Counsel Advice 1027051 Released July 9, 2010 Advice

CCA 1027051: State law does not control federal worker classification

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This page covers one taxpayer's ruling from 2010, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2010
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It resolved one taxpayer's situation on its specific facts, 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

Chief Counsel Advice states that state law does not dictate whether workers are employees for federal employment tax purposes. The type of entity and the way it conducts its business remain relevant facts, and state-law provisions may help illuminate those facts. The advice does not decide a specific worker-classification case.

Ruling snapshot

  • Question: Does state law determine whether workers are employees for federal employment tax purposes?
  • Outcome: advice given
  • Key authorities: IRC § 3121

Full text (IRS public release)

ID: CCA_2010060716083241 Number: 201027051
Release Date: 7/9/2010
Office: -----------------------------
UILC: 3121.04-01

From: ---------------
Sent: Monday, June 07, 2010 4:08:34 PM
To: -----------------------------
Cc: ---------------------------------------
Subject: RE: question

-------- --My answer is that state law does not dictate application of federal employment taxes. While it is
relevant to look at the type of entity involved and how they conduct their business (and state law
provisions may shed some light on those facts), the state laws do not dictate whether the workers are
employees or not. If you want to discuss a specific case please let me know.

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