Number of Fish Buyers and the 1099-MISC


Notice: Historical Content

This is an archival or historical document and may not reflect current law, policies or procedures.

Tax law requires the buyer of fish to issue a Form 1099-MISC, Miscellaneous Income, to a fisherman for certain cash sales. As long as the owner pays the crewmembers with a percentage of the catch, the following applies.

One Buyer

If all your cash sales are to the same buyer, then your gross receipts should equal the amount shown on the Form 1099-MISC. At the end of the calendar year, you should compare the 1099-MISC amount with the amount shown in your cash sales journal (provided you are a cash basis taxpayer).

Multiple Buyers

If your cash sales are to more than one buyer, then the amount shown in your cash sales journal should be compared to the total of the amounts shown on all 1099-MISC forms.

Multiple Buyers - Cash and Checks

If you sell for cash to some buyers and checks for others, then good recordkeeping becomes extremely important. You must keep track of cash sales and check sales. At the end of the year, the amounts must be reconciled to ensure the correct amount has been reported.

There are potential problems for crewmen who sell their own catch because they will be issued Form 1099-MISC from both the boat owner and the fish buyer, causing the same catch to be counted twice. See Fishing Penalties and Notices for more information. The easiest way to remedy potential problems is to sell the product and receive payment by check, not cash.