Update as to the status of your Railroad Retirement Tax refund claim filed on your behalf by CSX:
The IRS recently issued refunds for 2009, 2010, & 2011 claim years only. If your claim relates to years 2012 through 2021, refunds have not been issued, but CSX is still actively pursuing refunds for these years.
Assuming your claim related to 2009, 2010, or 2011, and you provided a properly completed consent to CSX, you can expect to receive your refund, plus interest. Your refund will be provided to you as soon as administratively possible either by check or direct deposit. If you have any questions related to the amount of your refund, please consult the original consent letter you received. Remember, your refund will include interest and will be larger than the amount shown within the tax refund boxes on your consent letter.
Given the competing business demands faced by the IRS, it is uncertain when they finally will approve and process these Railroad Retirement Tax refund claims. We share your frustration with the length of time it is taking for you to receive the remaining refunds. We can assure you, however, that we continue to work with the IRS to urge prompt resolution.
CSX will continue to provide updates as events warrant.
The recent court decision in CSX Corporation v. United States, 18 F.4th 672 (CA-11 2021), along with related litigation involving CSX, held that railroads and railroad employees do not owe Railroad Retirement Tax Act (RRTA) taxes on employee relocation benefits. For that reason, you may be entitled to an RRTA refund.
CSX Rail Payroll Services, Inc. (“CSX”), already had filed refund claims with the IRS on behalf of all subsidiaries of CSX Corporation that are covered by the RRTA and on behalf of their current and former employees. The administrative and judicial refund claim process is ongoing, and at this time, CSX cannot guarantee that you will receive a refund. To the extent the IRS refunds any of your RRTA taxes, CSX will remit your share to you plus any applicable interest and net of any related legal fees in accordance with IRS procedures developed for this purpose.
Before the IRS refunds any RRTA taxes, federal tax regulations require CSX to ask you for your signed consent to obtain your refund. (For more information about the IRS’s requirements, please see Treasury Regulation §31.6402[a]-2 and Revenue Procedure 2017-28.)