James E. Anderson and Cheryl J. Latos - Page 20

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          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             
                              *    *    *    *    *    *    *                         
                    (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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