Employers v. Not Employers

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200519056
Release Date: 5/13/2005
CC:TEGE:EOEG:ET1
POSTN-163332-04
UILC: 3231.01-00 date: February 7, 2005 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 became an employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act as of ---:
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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 ------became an employer under the jurisdiction of the Railroad Retirement Tax Act as of ------.
However, we note that the LLC may be disregarded as an entity separate from its apparent sole owner, in which case the owner is ultimately liable for any employment tax liability. See Notice 99-6, 1991-1 C.B. 321. Please take the appropriate action regarding this business.
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Janine Cook-