- 20 -
status.12 See 45 Fed. Reg. 57122 (Aug. 27, 1980); see also T.D.
7716, 1980-2 C.B. 241.
f. Flamingo Fish Corp. v. United States
In Flamingo Fish Corp. v. United States, 32 Fed. Cl. 377
(1994), the taxpayer allocated a “per”, which is “a small
additional sum of money * * *, usually $25 or a multiple thereof,
12Sec. 31.3121(b)(20)-1(a), Employment Tax Regs., provides
in pertinent part:
(a) In general. (1) Service performed * * * by an
individual on a boat engaged in catching fish * * * are
excepted from employment if--
(i) The individual receives a * * * a share of the
proceeds from the sale of the [boat’s] catch [of fish],
(ii) The amount of the individual’s share depends
solely on the amount of the boat’s * * * catch of fish,
(iii) The individual does not receive and is not
entitled to receive, any cash remuneration, other than
remuneration that is described in sub-division (1) of this
subparagraph
* * * * * * *
(2) The requirement of subdivision (ii) is not
satisfied if there exists an agreement with the boat’s * * *
owner or operator by which the individual’s remuneration is
determined partially or fully by a factor not dependent on
the size of the catch. For example, if a boat is operated
under a remuneration arrangement, e.g., a collective
agreement which specifies that crew members, in addition to
receiving a share of the catch, are entitled to an hourly
wage for repairing nets, regardless of whether this wage is
actually paid, then all the crew members covered by the
arrangement are entitled to receive cash remuneration other
than a share of the catch and their services are not
excepted from employment by section 3121(b)(20).
[Emphasis added.]
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