Employers v. Not Employers

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200546042
Release Date: 11/18/2005
CC:TEGE:EOEG:ET1
POSTN-130481-05
UILC: 3231.01-00 date: August 5, 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 is 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 ---is an employer under the Railroad Retirement Tax Act as of ---. ------has advised the RRB that --- will have its direct operating employees (i.e., engineers, switchmen, track maintenance crew, locomotive and car maintenance crew) provided by outside contractors. The RRB notes that prior decisions by the agency have held that services performed by individuals operating a railroad are covered services under the
Acts. Please take the appropriate action regarding this business.
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Janine Cook cc: