Ezel / IRS Rulings / 1202028
Chief Counsel Advice 1202028 Released January 13, 2012 Advice

CCA 1202028: CCA explains payroll-tax recapture coverage

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This page covers one taxpayer's ruling from 2012, 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 2012
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 addressed the recapture provisions in the temporary payroll tax cut law referenced in H.R. 3765 and Public Law 112-78. The advice states that recapture applies to reduced FICA tax on employees and reduced Railroad Retirement Tax Act tax on employees, but apparently not to reduced Railroad Retirement Tax Act tax on employee representatives. It also states that the note's reference to IRC section 1401 does not control the statutory-language analysis.

Ruling snapshot

  • Question: Which reduced payroll-tax categories are subject to the recapture provision?
  • Outcome: Advice given
  • Key authorities: IRC §§ 3101, 3121, 3201, 3211, and 1401

Full text (IRS public release)

ID: CCA-123010-11 Number: 201202028
Release Date: 1/13/2012
Office: -----------------------
UILC: 3101.00-00

From: ---------------
Sent: Friday, December 30, 2011 1:08 PM
To: -----------------------------------------
Cc: ------------------------------------------------------------------------------------
Subject: RE: H.R. 3765, Temporary Payroll Tax Cut Continuation Act of 2011- signed by the President
on December 23, 2011 (P.L. 112-78)

-------the recapture applies to both the reduced FICA tax on employees and the reduced RRTA tax on
employees (see references to both wages under 3121 and compensation subject to 3201), but apparently
not the reduced RRTA tax on employee representatives under 3211. The note reference to 26 USC 1401
is not relevant in determining the application of the statutory language.

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