James E. Anderson and Cheryl J. Latos - Page 4

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          the gross proceeds of the sale of the catch to determine the net            
          proceeds of the voyage.  The crew members, including the captain,           
          were allocated 50 percent of the net proceeds (the crew members’            
          share), and the boat owner and the captain were allocated 50                
          percent of the net proceeds.  The crew members, including the               
          captain, shared the crew members’ share equally after subtracting           
          the crew’s total expenses for food, payments to “lumpers”                   
          (laborers employed to help unload the catch), and other                     
          miscellaneous items.  When petitioner worked as captain, he                 
          received a crew member’s share and a percentage of the 50-percent           
          share allocated to the boat owner and the captain.2                         
               Dapper Fisheries, Inc., and Rowell Fisheries, Inc.,3 issued            
          Forms 1099-MISC, Miscellaneous Income, to petitioner reflecting             
          “fishing boat proceeds” of $3,832.23 and $46,653.96 he received             


               2The settlement sheet for the voyage of the Elizabeth R. on            
          which petitioner served as captain indicates that his captain’s             
          share amounted to 15 percent of the boat owner’s and captain’s              
          50-percent share of the net proceeds, unreduced by expenses for             
          food, payments to lumpers, and miscellaneous items.  Other                  
          settlement sheets maintained for the Elizabeth R. indicate that             
          petitioner’s crew member’s share for four voyages was charged for           
          “clothing” and for one voyage was charged for “supplies.”                   
               3Although Dan Barlow and Doug Rowell owned the Enterprise              
          and Elizabeth R., respectively, Dapper Fisheries, Inc., and                 
          Rowell Fisheries, Inc., were listed as the “payers” on the Forms            
          1099-MISC, Miscellaneous Income, issued to petitioner.  Whether             
          the fishing boat owner’s shares and payments referred to supra              
          note 2 and the text were actually received or paid by the boat              
          owners or the corporations has no bearing on the outcome of this            
          case.                                                                       





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