Employers v. Not Employers

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200518078
Release Date: 5/6/2005
CC:TEGE:EOEG:ET1
POSTN-164274-04
UILC: 3231.01-00 date: January 6, 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 business ceased to be an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act effective ---:
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We have reviewed the opinion of the RRB, which states that ---
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---has terminated its operation of ---. Based upon the information submitted to us by the RRB, we also conclude that --- ceased to be an employer (as a “carrier”) under the Railroad Retirement Tax Act (RRTA) effective ---, since it no longer operates a shortline railroad.1 Please take the appropriate action regarding this business or contact me at

(202) 622-6040 if you have any questions.
Joseph W. Spires cc:
1 The Board’s opinion suggests that --- may continue to perform rail car repair services. Since the RRB’s opinion does not discuss whether --- is directly or indirectly owned or controlled by carriers, we cannot conclude whether ----- may be an employer for purposes of the RRTA under the alternate definition of “employer” under § 3231(a) of the Code.