James E. Anderson and Cheryl J. Latos - Page 25

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          “proceeds” is proceeds after subtraction of operating expenses.             
          See, e.g., Atl. Mut. Ins. Co. v. Commissioner, 523 U.S. 382                 
          (1998); Hedden v. Richard, 149 U.S. 346, 348-349 (1893); Central            
          Reserve Life Corp. v. Commissioner, 113 T.C. 231, 237 (1999) (it            
          is appropriate to construe the meaning of section 816 of                    
          subchapter L of the Code, involving insurance companies, in light           
          of its usage in the insurance industry, to the extent it has an             
          established meaning in that industry).                                      
               The term “proceeds”, as a “word of great generality”, see              
          Phelps v. Harris, supra at 380, refers to a general class that              
          encompasses a collection of all forms of proceeds, including                
          gross proceeds, net proceeds, and any other property received               
          from an exchange of property, etc.  As a matter of formal logic,            
          proceeds from the sale of the catch of fish determined after                
          subtraction of operating expenses is completely included in the             
          greater class, proceeds from the sale of the catch; that is, net            
          proceeds is a form of or subclass of proceeds.  See Langer, An              
          Introduction to Symbolic Logic 115-118 (3d ed. 1967).                       
               b.  Legislative History and Congressional Intent Underlying            
               Section 3121(b)(20) and the Development of Section                     
               31.3121(b)(20)-1(a), Employment Tax Regs.                              
               Petitioners argue section 3121(b)(20) precludes self-                  
          employment status for fishing boat workers who receive proceeds             
          after subtraction of operating expenses because those operating             
          expenses do not depend “solely” on the amount of the catch, as              

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