Employers v. Not Employers

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200514012
Release Date: 4/8/2005
CC:TEGE:EOEG:ET1:
POSTN-161836-04
UILC: 3231.01-00 date: September 13, 2004 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 businesses became employers under the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective ---:
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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 --- and ------became employers under the Railroad Retirement Tax Act effective ------. However, we do not have enough information to support the factual statements in the RRB opinion that the two “operating partners” are not also employees of one or both of the entities. Please take the appropriate action regarding these businesses.
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Janine Cook-