Railroad Giant CSX Wins Appeal in Relocation Benefits Tax Fight

Railroad giant CSX Corp. can seek a tax refund on relocation benefits paid to employees under the Railroad Retirement Tax Act because the workers incurred the expenses to carry out the company’s business, the U.S. Court of Appeals for the Eleventh Circuit said.

The case pertains to CSX’s practice of paying for many of the expenses its employees incur when it requires them to move to new locations, including temporary housing and storage fees.

The company paid $1.76 million in taxes for relocation benefits in 2009, treating them as taxable compensation under the Railroad Retirement Tax Act. It later ...