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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. CLARIFICATION OF EMPLOYMENT TAX STATUS
OF CERTAIN FISHERMEN.
(a) AMENDMENTS OF INTERNAL REVENUE CODE OF
1986.—
(1) DETERMINATION OF SIZE OF CREW.—Sub-
section (b) of section 3121 of the Internal Revenue
Code of 1986 (defining employment) is amended by
adding at the end thereof the following new sen-
tence:
‘‘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
PER-
MITTED.—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 remu-
neration—
‘‘(i) which does not exceed $100 per
trip;
‘‘(ii) which is contingent on a mini-
mum catch; and
‘‘(iii) which is paid solely for addi-
tional duties (such as mate, engineer, or
cook) for which additional cash remunera-
tion 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
‘‘SEC. 6050Q. RETURNS RELATING TO CERTAIN PURCHASES
OF FISH.
‘‘(a) REQUIREMENT
OF REPORTING.—Every per-
son—
‘‘(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 sub-
section if such return—
‘‘(1) is in such form as the Secretary may pre-
scribe, and
‘‘(2) contains—
‘‘(A) the name, address, and TIN of each
person to whom a payment described in sub-
section (a)(2) was made during the calendar
year;
‘‘(B) the aggregate amount of such pay-
ments made to such person during such cal-
endar year and the date and amount of each
such payment, and
‘‘(C) such other information as the Sec-
retary may require.
‘‘(c) STATEMENT TO BE FURNISHED WITH RE-
SPECT 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 re-
quired 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 sen-
tence shall be furnished to the person on or before Janu-
ary 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 re-
turns 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.
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