Employers v. Not Employers

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200516015
Release Date: 4/22/2005
CC:TEGE:EOEG:ET1:
POSTN-160706-04
UILC: 3231.01-00 date: November 23, 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 ---
---ceased to be an employer under the Railroad Retirement Act and the
Railroad Unemployment Insurance Act (the Acts) effective ---and that
--- became an employer under the Acts effective ---
---.
Effective ---changed its name to --- ---
--- The RRB further concludes that ---is the successor employer of ---for contribution rate purposes.
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POSTN-160706-04 2
We have reviewed the opinion of the RRB and, based upon the information submitted to us by the RRB, we also conclude that ---ceased to be an employer under the Railroad Retirement Tax Act (RRTA) effective ------, assuming it paid no further compensation after such date, and that --- became an employer under the RRTA effective ---. The RRB’s successor employer determination for contribution rate purposes does not affect the application of RRTA. However, we do not have enough information to determine with certainty that --- renamed --- is the successor employer of ---for RRTA purposes. Please take the appropriate action regarding these businesses.
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Janine Cook cc: