B.C.D. 04-24

APR 2 1 2004

EMPLOYER STATUS DETERMINATION

Kansas Southern Railway. LLC

This is the decision of the Railroad Retirement Board regarding the

continued status of the Kansas Southern Railway, LLC, as an employer

under the Railroad Retirement Act (45 LLS.C. § 231, et seq.) (RRA) and the

Railroad Unemployment Insurance Act (45 U.S.C. § 351, et seq.) (RUIA).

Kansas Southern was held to be an employer under the Acts effective

December 11, 2000, (B.A. Number 2799). It operated over 43 miles of

track as a subcontractor of V & S Railway Company, a covered employer

under the Acts (B.A. No. 2796). Kansas Southern ceased operating as a

subcontractor on October 31, 2002, when the contract was terminated and

assigned to the New Hampshire and Vermont Railway Company1.

Section 202.11 of the Board’s regulations provides that:

The employer status of any company or person shall terminate

whenever such company or person loses any of the characteristics

essential to the existence of an employer status.

Through the termination of its contract with V&S Railway Company and

the cessation of operations, Kansas Southern has lost the characteristics

essential to the existence of an employer status. Accordingly, the Board

holds that Kansas Southern ceased to be an employer under the Railroad

Retirement and Railroad Unemployment Insurance Acts effective with the

close of business on October 31, 2002. Cf. Rev Ruling 82-99, 1982-2 C.B. 

154, wherein the Internal Revenue Service ruled that a railroad ceases to

be an employer subject to taxes under the Railroad Retirement Tax Act

when the railroad’s employees stop performing services in connection with

the railroad’s carrier activities.

1 This company is currently being reviewed by the Board's Audit and Compliance Section

regarding its status under the Acts.

BA#2799
-2-

It should be noted that the obligation of Kansas Southern to file reports of

service and compensation for the period of its operation, which it has

apparently failed to do, is not extinguished by the issuance of this decision

terminating the coverage of Kansas Southern.

. Q-£ ,

V. M. Speakman, Jr.

"AM- tuce

ferome F. Kever
B.C.D. 04-24

APR 2 1 2004

EMPLOYER STATUS DETERMINATION

Kansas Southern Railway. LLC

This is the decision of the Railroad Retirement Board regarding the

continued status of the Kansas Southern Railway, LLC, as an employer

under the Railroad Retirement Act (45 U.S.C. § 231, et seep) (RRA) and the

Railroad Unemployment Insurance Act (45 U.S.C. § 351, et seep) (RUIA).

Kansas Southern was held to be an employer under the Acts effective

December 11. 2000, (B.A. Number 2799). It operated over 43 miles of

track as a subcontractor of V & S Railway Company, a covered employer

under the Acts (B.A. No. 2796). Kansas Southern ceased operating as a 

subcontractor on October 31, 2002, when the contract was terminated and

assigned to the New Hampshire and Vermont Railway Company1.

Section 202.11 of the Board’s regulations provides that:

The employer status of any company or person shall terminate

whenever such company or person loses any of the characteristics

essential to the existence of an employer status.

Through the termination of its contract with V&S Railway Company and

the cessation of operations, Kansas Southern has lost the characteristics

essential to the existence of an employer status. Accordingly, the Board

holds that Kansas Southern ceased to be an employer under the Railroad

Retirement and Railroad Unemployment Insurance Acts effective with the

close of business on October 31. 2002. Cf. Rev Ruling 82-99, 1982-2 C.B. 

154, wherein the Internal Revenue Service ruled that a railroad ceases to

be an employer subject to taxes under the Railroad Retirement Tax Act

when the railroad’s employees stop performing services in connection with

the railroad's carrier activities.

1 This company is currently being reviewed by the Board's Audit and Compliance Section

regarding its status under the Acts.
-9.

It should be noted that the obligation of Kansas Southern to file reports of 

service and compensation for the period of its operation, which it has

apparently failed to do, is not extinguished by the issuance of this decision

terminating the coverage of Kansas Southern.

/Lf^&Mv***-^ Qd- •

V. M. Speakman, Jr.' *

^3--tuc-g

ferome F. Kever