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received for working as a crew member or captain on
small fishing boats during 1997. R determined Ps are
liable under sec. 1401, I.R.C., for self-employment tax
with respect to Ps’ 1997 tax year on the ground that P
was a self-employed fishing boat worker during 1997.
Ps argue P was an employee under sec. 3121(b)(20),
I.R.C., on the ground that his share of proceeds of the
catches of fish did not depend solely on the amount of
the catch because operating expenses were subtracted in
computing his share.
Held: P was self-employed under sec. 3121(b)(20),
I.R.C., because proceeds from the sale of the catches
of fish after subtraction of operating expenses depend
on the amount of each catch. We interpret the “depends
solely” provision of sec. 31.3121(b)(20)-1, Employment
Tax Regs., as excluding only additional fixed payments
to crew members, and P did not receive any such
payments.
James E. Anderson and Cheryl J. Latos, pro sese.
John Aletta, for respondent.
OPINION
BEGHE, Judge: Respondent determined petitioners are liable
under section 1401 for self-employment tax of $5,764 with respect
to their 1997 tax year.1
The issue for decision is whether, during 1997, James
Anderson (petitioner) was a self-employed worker on fishing boats
under section 3121(b)(20), making petitioners liable for self-
1Unless otherwise specified, all section references are to
the Internal Revenue Code in effect for the year at issue.
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