Employers v. Not Employers

Office of Chief Counsel
Internal Revenue Service
Memorandum
Number: 200715010
Release Date: 4/13/2007
CC:TEGE:EOEG:ET1
POSTN-100149-07
UILC: 3231.01-00 date: March 5, 2007 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 not a covered employer under the Railroad Retirement Act and the Railroad Unemployment Insurance Act-------------We have reviewed the opinion of the RRB and, based upon the information submitted to us by the RRB, we also conclude that ---. is not a covered employer under the jurisdiction of the Railroad Retirement Tax Act.
However, we do note that a dissenting member of the RRB objected to the decision being rendered without further review of possible indirect control of the company by a rail carrier. Accordingly, we note that a further development of the facts regarding indirect control could change our conclusion. Please take the appropriate action regarding this business.
____
Janine Cook-