I

103D CONGRESS

2D SESSION H. R. 4465

To amend the Internal Revenue Code of 1986 to clarify the employment

status of certain fishermen, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MAY 20, 1994

Mr. FRANK of Massachusetts introduced the following bill; which was referred

to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to clarify

the employment status of certain fishermen, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. CLARIFICATION OF EMPLOYMENT TAX STATUS

4 OF CERTAIN FISHERMEN.

5 (a) AMENDMENTS OF INTERNAL REVENUE CODE OF

6 1986.—

7 (1) DETERMINATION OF SIZE OF CREW.—Sub8 section (b) of section 3121 of the Internal Revenue

9 Code of 1986 (defining employment) is amended by
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1 adding at the end thereof the following new sen2 tence:

3 ‘‘For purposes of paragraph (20), the operating crew of

4 a boat shall be treated as normally made up of fewer than

5 10 individuals if the average size of the operating crew

6 on trips made during the preceding 4 calendar quarters

7 consisted of fewer than 10 individuals.’’

8 (2) CERTAIN CASH REMUNERATION PER9 MITTED.—Subparagraph (A) of section 3121(b)(20)

10 of such Code is amended to read as follows:

11 ‘‘(A) such individual does not receive any

12 cash remuneration other than as provided in

13 subparagraph (B) and other than cash remu14 neration—

15 ‘‘(i) which does not exceed $100 per

16 trip;

17 ‘‘(ii) which is contingent on a mini18 mum catch; and

19 ‘‘(iii) which is paid solely for addi20 tional duties (such as mate, engineer, or

21 cook) for which additional cash remunera22 tion is traditional in the industry,’’.

23 (3) CONFORMING AMENDMENT.—Section

24 6050A(a) of such Code is amended by striking

25 ‘‘and’’ at the end of paragraph (3), by striking the
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1 period at the end of paragraph (4) and inserting ‘‘;

2 and’’, and by adding at the end thereof the following

3 new paragraph:

4 ‘‘(5) any cash remuneration described in section

5 3121(b)(20)(A).’’

6 (b) AMENDMENT OF SOCIAL SECURITY ACT.—

7 (1) DETERMINATION OF SIZE OF CREW.—Sub8 section (a) of section 210 of the Social Security Act

9 is amended by adding at the end thereof the follow10 ing new sentence:

11 ‘‘For purposes of paragraph (20), the operating crew of

12 a boat shall be treated as normally made up of fewer than

13 10 individuals if the average size of the operating crew

14 on trips made during the preceding 4 calendar quarters

15 consisted of fewer than 10 individuals.’’

16 (2) CERTAIN CASH REMUNERATION PER17 MITTED.—Subparagraph (A) of section 210(a)(20)

18 of such Act is amended to read as follows:

19 ‘‘(A) such individual does not receive any

20 additional compensation other than as provided

21 in subparagraph (B) and other than cash remu22 neration—

23 ‘‘(i) which does not exceed $100 per

24 trip;
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1 ‘‘(ii) which is contingent on a mini2 mum catch; and

3 ‘‘(iii) which is paid solely for addi4 tional duties (such as mate, engineer, or

5 cook) for which additional cash remunera6 tion is traditional in the industry,’’.

7 (c) EFFECTIVE DATE.—

8 (1) IN GENERAL.—The amendments made by

9 this section shall apply to remuneration paid after

10 December 31, 1994.

11 (2) SPECIAL RULE.—The amendments made by

12 this section (other than subsection (a)(3)) shall also

13 apply to remuneration paid after December 31,

14 1984, and before January 1, 1995, unless the payor

15 treated such remuneration (when paid) as being sub16 ject to tax under chapter 21 of the Internal Revenue

17 Code of 1986.

18 SEC. 2. INFORMATION REPORTING.

19 (a) IN GENERAL.—Subpart B of part III of sub20 chapter A of chapter 68 of the Internal Revenue Code of

21 1986 (relating to information concerning transactions

22 with other persons) is amended by adding at the end the

23 following new section:
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1 ‘‘SEC. 6050Q. RETURNS RELATING TO CERTAIN PURCHASES

2 OF FISH.

3 ‘‘(a) REQUIREMENT OF REPORTING.—Every per4 son—

5 ‘‘(1) who is engaged in the trade or business of

6 purchasing fish for resale from any person engaged

7 in the trade or business of catching fish; and

8 ‘‘(2) who makes payments in cash in the course

9 of such trade or business to such a person of $1,000

10 or more during any calendar year for the purchase

11 of fish,

12 shall make a return (at such times as the Secretary may

13 prescribe) described in subsection (b) with respect to each

14 person to whom such a payment was made during such

15 calendar year.

16 ‘‘(b) RETURN.—A return is described in this sub17 section if such return—

18 ‘‘(1) is in such form as the Secretary may pre19 scribe, and

20 ‘‘(2) contains—

21 ‘‘(A) the name, address, and TIN of each

22 person to whom a payment described in sub23 section (a)(2) was made during the calendar

24 year;

25 ‘‘(B) the aggregate amount of such pay26 ments made to such person during such cal-
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1 endar year and the date and amount of each

2 such payment, and

3 ‘‘(C) such other information as the Sec4 retary may require.

5 ‘‘(c) STATEMENT TO BE FURNISHED WITH RE6 SPECT TO WHOM INFORMATION IS REQUIRED.—Every

7 person required to make a return under subsection (a)

8 shall furnish to each person whose name is required to

9 be set forth in such return a written statement showing—

10 ‘‘(1) the name and address of the person re11 quired to make such a return, and

12 ‘‘(2) the aggregate amount of payments to the

13 person required to be shown on the return.

14 The written statement required under the preceding sen15 tence shall be furnished to the person on or before Janu16 ary 31 of the year following the calendar year for which

17 the return under subsection (a) is required to be made.

18 ‘‘(d) DEFINITIONS.—For purposes of this section:

19 ‘‘(1) CASH.—The term ‘cash’ has the meaning

20 given such term by section 6050I(d).

21 ‘‘(2) FISH.—The term ‘fish’ includes other

22 forms of aquatic life.’’.

23 (b) TECHNICAL AMENDMENTS.—

24 (1) Subparagraph (A) of section 6724(d)(1) of

25 such Code is amended by striking ‘‘or’’ at the end
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1 of clause (vi), by striking ‘‘and’’ at the end of clause

2 (vii) and inserting ‘‘or’’, and by adding at the end

3 the following new clause:

4 ‘‘(viii) section 6050Q (relating to re5 turns relating to certain purchases of fish),

6 and’’.

7 (2) Paragraph (2) of section 6724(d) of such

8 Code is amended by redesignating subparagraphs

9 (Q) through (T) as subparagraphs (R) through (U),

10 respectively, and by inserting after subparagraph (P)

11 the following new subparagraph:

12 ‘‘(Q) section 6050Q(c) (relating to returns

13 relating to certain purchases of fish),’’.

14 (3) The table of sections for subpart B of part

15 III of subchapter A of chapter 68 of such Code is

16 amended by adding at the end the following new

17 item:

‘‘Sec. 6050Q. Returns relating to certain purchases of fish.’’.

18 (c) EFFECTIVE DATE.—The amendments made by

19 this section shall apply to payments made after December

20 31, 1994.

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