James E. Anderson and Cheryl J. Latos - Page 37

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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          102, supra, because the Secretary superseded or revoked it by               





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