Ezel / IRS Rulings / 1035020
Chief Counsel Advice 1035020 Released September 3, 2010 Advice

CCA said branch manager employee status depends on a fact-specific balancing test

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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

The Office of Chief Counsel advised that whether branch managers are employees under the usual common-law rules depends on a balancing test based on the facts and circumstances of each situation. The advice did not establish a categorical rule for branch managers.

Ruling snapshot

  • Question: Are branch managers employees under the common-law rules used to determine an employer-employee relationship?
  • Outcome: Advice given
  • Key authorities: IRC § 3121(d); IRC § 6110(k)(3) not-precedent notice

Full text (IRS public release)

ID: CCA_2010081015084630 Number: 201035020
Release Date: 9/3/2010
Office: -----------------------------
UILC: 3121.04-01

From: ------------------
Sent: Tuesday, August 10, 2010 3:08:47 PM
To: ---------------
Cc:
Subject: RE: IRC 3121(d) ---------

Appears helpful. Bottom line is every situation will be a balancing test based on its own facts and
circumstances as to whether the branch managers have the status of employees under the
usual common law rules applicable in determining the employer-employee relationship.

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