James E. Anderson and Cheryl J. Latos - Page 19

                                       - 19 -                                         
          cook.  The Commissioner ruled that the 6 crew members are self-             
          employed under section 3121(b)(20) because they do not receive              
          any cash remuneration other than a share of the proceeds from the           
          sale of the catch after subtraction of operating expenses, their            
          share depends on the amount of the catch, and the operating crew            
          of the boat normally consists of fewer than 10 individuals.  The            
          Commissioner also ruled that the mate, the cook, and the engineer           
          were employees under section 3121(b)(20) because the $25 flat fee           
          compensation for services they performed at sea did “not depend             
          on the amount of the boat’s catch of fish”.                                 
               e.  Section 31.3121(b)(20)-1(a), Employment Tax Regs.                  
               In 1980, the Commissioner promulgated section                          
          31.3121(b)(20)-1(a), Employment Tax Regs., which purports to                
          paraphrase section 3121(b)(20) and provides that if a crew                  
          member’s share “depends solely on the amount of the boat’s * * *            
          catch of fish” (emphasis added), he qualifies for self-employment           

Page:  Previous  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  Next

Last modified: May 25, 2011