04-26839. Publication of the Tier 2 Tax Rates

ACTION:

Notice.

SUMMARY:

Publication of the tier 2 tax rates for calendar year 2005 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 (a group unique to the railroad industry) fund a private pension benefit of the railroad retirement system.

DATES:

The tier 2 tax rates for calendar year 2005 apply to compensation paid in calendar year 2005.

FOR FURTHER INFORMATION CONTACT:

Margaret A. Owens, CC:TEGE:EOEG:ET1, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC 20224, Telephone Number [phone] (not a toll-free number).

Tier 2 Tax Rates: The tier 2 tax rate for 2005 under § 3201(b) on employees is 4.4 percent of compensation. The tier 2 tax rate for 2005 under § 3221(b) on employers is 12.6 percent of compensation. The tier 2 tax rate for 2005 under § 3211(b) on employee representatives is 12.6 percent of compensation.

Dated: December 1, 2004.

Nancy Marks,

Division Counsel/Associate Chief Counsel (Tax Exempt and Government Entities).