To amend the Internal Revenue Code of 1986 to clarify the employment status of certain fishermen, and for other purposes.

SECTION 1. CLARIFICATION OF EMPLOYMENT TAX STATUS OF CERTAIN FISHERMEN.

    (a) Amendments of Internal Revenue Code of 1986.--
            (1) Determination of size of crew.--Subsection (b) of 
        section 3121 of the Internal Revenue Code of 1986 (defining 
        employment) is amended by adding at the end thereof the 
        following new sentence:
``For purposes of paragraph (20), the operating crew of a boat shall be 
treated as normally made up of fewer than 10 individuals if the average 
size of the operating crew on trips made during the preceding 4 
calendar quarters consisted of fewer than 10 individuals.''
            (2) Certain cash remuneration permitted.--Subparagraph (A) 
        of section 3121(b)(20) of such Code is amended to read as 
        follows:
                    ``(A) such individual does not receive any cash 
                remuneration other than as provided in subparagraph (B) 
                and other than cash remuneration--
                            ``(i) which does not exceed $100 per trip;
                            ``(ii) which is contingent on a minimum 
                        catch; and
                            ``(iii) which is paid solely for additional 
                        duties (such as mate, engineer, or cook) for 
                        which additional cash remuneration is 
                        traditional in the industry,''.
            (3) Conforming amendment.--Section 6050A(a) of such Code is 
        amended by striking ``and'' at the end of paragraph (3), by 
        striking the period at the end of paragraph (4) and inserting 
        ``; and'', and by adding at the end thereof the following new 
        paragraph:
            ``(5) any cash remuneration described in section 
        3121(b)(20)(A).''
    (b) Amendment of Social Security Act.--
            (1) Determination of size of crew.--Subsection (a) of 
        section 210 of the Social Security Act is amended by adding at 
        the end thereof the following new sentence:
``For purposes of paragraph (20), the operating crew of a boat shall be 
treated as normally made up of fewer than 10 individuals if the average 
size of the operating crew on trips made during the preceding 4 
calendar quarters consisted of fewer than 10 individuals.''
            (2) Certain cash remuneration permitted.--Subparagraph (A) 
        of section 210(a)(20) of such Act is amended to read as 
        follows:
                    ``(A) such individual does not receive any 
                additional compensation other than as provided in 
                subparagraph (B) and other than cash remuneration--
                            ``(i) which does not exceed $100 per trip;
                            ``(ii) which is contingent on a minimum 
                        catch; and
                            ``(iii) which is paid solely for additional 
                        duties (such as mate, engineer, or cook) for 
                        which additional cash remuneration is 
                        traditional in the industry,''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section shall 
        apply to remuneration paid after December 31, 1994.
            (2) Special rule.--The amendments made by this section 
        (other than subsection (a)(3)) shall also apply to remuneration 
        paid after December 31, 1984, and before January 1, 1995, 
        unless the payor treated such remuneration (when paid) as being 
        subject to tax under chapter 21 of the Internal Revenue Code of 
        1986.

SEC. 2. INFORMATION REPORTING.

    (a) In General.--Subpart B of part III of subchapter A of chapter 
68 of the Internal Revenue Code of 1986 (relating to information 
concerning transactions with other persons) is amended by adding at the 
end the following new section:

``SEC. 6050Q. RETURNS RELATING TO CERTAIN PURCHASES OF FISH.

    ``(a) Requirement of Reporting.--Every person--
            ``(1) who is engaged in the trade or business of purchasing 
        fish for resale from any person engaged in the trade or 
        business of catching fish; and
            ``(2) who makes payments in cash in the course of such 
        trade or business to such a person of $1,000 or more during any 
        calendar year for the purchase of fish,
shall make a return (at such times as the Secretary may prescribe) 
described in subsection (b) with respect to each person to whom such a 
payment was made during such calendar year.
    ``(b) Return.--A return is described in this subsection if such 
return--
            ``(1) is in such form as the Secretary may prescribe, and
            ``(2) contains--
                    ``(A) the name, address, and TIN of each person to 
                whom a payment described in subsection (a)(2) was made 
                during the calendar year;
                    ``(B) the aggregate amount of such payments made to 
                such person during such calendar year and the date and 
                amount of each such payment, and
                    ``(C) such other information as the Secretary may 
                require.
    ``(c) Statement To Be Furnished With Respect to Whom Information is 
Required.--Every person required to make a return under subsection (a) 
shall furnish to each person whose name is required to be set forth in 
such return a written statement showing--
            ``(1) the name and address of the person required to make 
        such a return, and
            ``(2) the aggregate amount of payments to the person 
        required to be shown on the return.
The written statement required under the preceding sentence shall be 
furnished to the person on or before January 31 of the year following 
the calendar year for which the return under subsection (a) is required 
to be made.
    ``(d) Definitions.--For purposes of this section:
            ``(1) Cash.--The term `cash' has the meaning given such 
        term by section 6050I(d).
            ``(2) Fish.--The term `fish' includes other forms of 
        aquatic life.''.
    (b) Technical Amendments.--
            (1) Subparagraph (A) of section 6724(d)(1) of such Code is 
        amended by striking ``or'' at the end of clause (vi), by 
        striking ``and'' at the end of clause (vii) and inserting 
        ``or'', and by adding at the end the following new clause:
                            ``(viii) section 6050Q (relating to returns 
                        relating to certain purchases of fish), and''.
            (2) Paragraph (2) of section 6724(d) of such Code is 
        amended by redesignating subparagraphs (Q) through (T) as 
        subparagraphs (R) through (U), respectively, and by inserting 
        after subparagraph (P) the following new subparagraph:
                    ``(Q) section 6050Q(c) (relating to returns 
                relating to certain purchases of fish),''.
            (3) The table of sections for subpart B of part III of 
        subchapter A of chapter 68 of such Code is amended by adding at 
        the end the following new item:

                              ``Sec. 6050Q. Returns relating to certain 
                                        purchases of fish.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made after December 31, 1994.

Summary: Amends the Internal Revenue Code and title II of the Social Security Act to revise the employment tax treatment of certain crew members on fishing vessels with a crew of ten or fewer individuals. Requires certain persons engaged in the trade or business of purchasing fish for resale to file information returns with respect to such purchases.