Ezel / IRS Rulings / 1028036
Chief Counsel Advice 1028036 Released July 16, 2010 Advice

CCA 1028036: Employer remained liable for its share of FICA taxes after settling other violations

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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 considered an employer's liability for its share of FICA taxes after the employer settled other legal violations with another federal agency. The advice states that the employer remained liable for the employer share of FICA taxes based on the materials reviewed. A settlement described as a total amount did not eliminate that tax liability. The memorandum also noted that the other federal agency might be contacted because the taxpayer had contacted it.

Ruling snapshot

  • Question: Did the employer's settlement with another federal agency eliminate its liability for the employer share of FICA taxes?
  • Outcome: advice given
  • Key authorities: IRC § 3121

Full text (IRS public release)

ID: CCA_2010061014441241 Number: 201028036
Release Date: 7/16/2010
Office: -----------------------------
UILC: 3121.01-01

From: ---------------
Sent: Thursday, June 10, 2010 2:44:16 PM
To: ----------------
Cc: -----------------------------------------------------------------
Subject: 941X case

We looked at the materials you sent. There seems to be a conflict in how the ER presents the settlement
terms and what they actually were, in terms of ER's knowledge of who got what. On the basis of what we
have, I would say the ER remained liable for the ER share of FICA taxes and the fact that it settled with
another federal agency for other legal violations for a "total amount" does not eliminate it's liability.

I mentioned to ------- that we may want to reach out to the other federal agency b/c I know the TP
contacted them as well.

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