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IRS Publishes Tier 2 Railroad Tax Rates

NOV. 22, 2006

71 F.R. 67709

DATED NOV. 22, 2006
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Citations: 71 F.R. 67709
Publication of the Tier 2 Tax Rates

 

DEPARTMENT OF THE TREASURY

 

 

Internal Revenue Service

 

 

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice.

SUMMARY: Publication of the tier 2 tax rates for calendar year 2007 as required by section 3241(d) of the Internal Revenue Code (26 U.S.C. 3241). Tier 2 taxes on railroad employees, employers, and employee representatives are one source of funding for benefits under the Railroad Retirement Act.

DATES: The tier 2 tax rates for calendar year 2007 apply to compensation paid in calendar year 2007.

FOR FURTHER INFORMATION CONTACT: Ligeia M. Donis, CC:TEGE:EOEG:ET1, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC 20224, Telephone Number (202) 622-0047 (not a toll-free number).

TIER 2 TAX RATES: The tier 2 tax rate for 2007 under section 3201(b) on employees is 3.9 percent of compensation. The tier 2 tax rate for 2007 under section 3221(b) on employers is 12.1 percent of compensation. The tier 2 tax rate for 2007 under section 3211(b) on employee representatives is 12.1 percent of compensation.

Dated: November 9, 2006.

Nancy Marks,

 

Division Counsel/Associate

 

Chief Counsel (Tax Exempt and

 

Government Entities).
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