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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29798
Experience:  Taxes, Immigration, Labor Relations
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I am interested in opening a crab dock. I was wondering how

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I am interested in opening a crab dock. I was wondering how taxes work with respect to paying crab fishermen for their catch. For example, I would pay several fishermen so much per pound and then re-sell their catch for say .50 more per pound to wholesalers in Maryland. Now I know how wildlife keeps money records, for the fishermen, but do I have to 10-99 each individual crabber? Or do I just pay taxes on my income? Isn't it their responsibility to claim their own income? Note that these fishermen wouldn't be my employees, they would be totally independent of my company. Also many of these fishermen sell to multiple docks, restaurants, and other businesses on a daily basis. Any input on this would be greatly appreciated. Thanks,   --- Josh Donovan
Submitted: 8 years ago.
Category: Tax
Expert:  Lev replied 8 years ago.

According to 1099misc instructions -


Fish purchases. If you are in the trade or business purchasing fish for resale, you must report total cash of $600 or more paid during the year to any person who is engaged in the trade or business of catching fish. Report these payments in box 7. You are required to keep record showing the date and amount of each cash payment made during the year, but you must report only the total amount paid for the year on Form 1099-MISC.

“Fish” means all fish and other forms of aquatic life. “Cash” means U.S. and foreign coin and currency and a cashier’s check, bank draft, traveler’s check, or money order. Cash does not include a check drawn on your personal or business account.


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