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expenses depend on the amount of the catch, the share of proceeds
of the catch that remains after subtraction of these expenses
consists solely of proceeds of the catch. The subtraction of
operating expenses does not constitute additional or fixed
compensation. The crew members’ share in the profits from each
catch does not depend partially or fully on any factor other than
the amount of the catch within the meaning of the statute and the
regulation.
The Senate Committee on Finance stated that the catch is
sold upon return to shore and each crewman is “immediately” paid
a percentage of the proceeds from the catch. Petitioners argue
that Congress, in using the word “immediately”, intended that the
fishing boat workers receive their share of the proceeds
immediately after the sale of the catch without delay for
subtraction of operating expenses. We disagree with petitioners’
argument. The word “immediately” does not preclude a quick
computation to subtract the amount of previously incurred
operating expenses.
c. Rev. Rul. 77-102 and Section 31.3121(b)(20)-1,
Employment Tax Regs.
In Rev. Rul. 77-102, 1977-1 C.B. 299, the Commissioner ruled
that crew members were self-employed even though they received a
share of the proceeds after subtraction of operating expenses.
Petitioners argue we should give little weight to Rev. Rul. 77-
102, supra, because the Secretary superseded or revoked it by
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