Publication 595
Introductory Material

This is archived information that pertains only to the 2003 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.

Table of Contents

• Introduction
• Important Changes for 2003
• Important Reminder
• Important Dates for 2004
• Useful Items - You may want to see:

Introduction

This publication highlights some special tax rules that may apply to you if you have your own fishing trade or business. The following persons have their own fishing trade or business.

• Fishing boat owners or operators who use their boats to fish for profit.
• Certain fishermen who work for a share of the catch.
• Other individuals who receive gross income from fishing.

Generally, you report your profit or loss from fishing on Schedule C or Schedule C–EZ of Form 1040. An example with a filled-in Schedule C, shown later, provides details on how to complete this form.

This publication does not contain all the tax rules that may apply to your fishing trade or business. For general information about the federal tax laws that apply to individuals who file Schedule C or C–EZ, see Publication 334, Tax Guide for Small Business. If your trade or business is a partnership or corporation, see Publication 541, Partnerships, or Publication 542, Corporations.

If you are just starting out in a fishing business or you need information on keeping books and records, see Publication 583, Starting a Business and Keeping Records.

Please note that this publication uses the term fisherman because it is the commonly accepted term in the fishing industry. In the following discussions it represents both men and women.

Comments and suggestions.

We welcome your comments about this publication and your suggestions for future editions.

You can email us at *[email protected]. Please put “Publications Comment” on the subject line.

You can write to us at the following address:

Internal Revenue Service
Business Forms and Publications
SE:W:CAR:MP:T:B
1111 Constitution Ave. NW
Washington, DC 20224

We respond to many letters by telephone. Therefore, it would be helpful if you would include your daytime phone number, including the area code, in your correspondence.

Important Changes
for 2003

Additional depreciation. You may be able to claim an additional 50% special depreciation allowance for property acquired after May 5, 2003. For more information, see Depreciation.

Nonqualified capital construction fund withdrawals. For tax years ending after May 5, 2003, the maximum tax rate applied to nonqualified withdrawals from the capital gain account in a capital construction fund decreases from 20% to 15%.

Important Reminder

Photographs of missing children. The Internal Revenue Service is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children selected by the Center may appear in this publication on pages that would otherwise be blank. You can help bring these children home by looking at the photographs and calling 1–800–THE–LOST (1–800–843–5678) if you recognize a child.

Important Dates
for 2004

This section highlights important due dates for the 2004 calendar year. For other important dates, see Publication 509, Tax Calendars for 2004.

Fishermen. If at least two-thirds of your 2002 or 2003 gross income was from fishing, you may want to pay at least two-thirds of your 2003 tax by this date, using Form 1040–ES, to meet your estimated tax requirement for 2003. You have until April 15 to file your 2003 Form 1040 and pay any remaining tax without an estimated tax penalty. See March 1, later, if you do not pay two-thirds of your tax by this date. If less than two-thirds of your gross income is from fishing, you generally must make quarterly estimated tax payments. See Due Dates for Nonqualified Fishermen, later.

Fishing boat operators. Fishing boat operators must give a 2003 Form 1099–MISC, Miscellaneous Income, to certain crew members who were self-employed.

Fishing boat operators. Use Form 1096, Annual Summary and Transmittal of U.S. Information Returns, to send Copy A of Forms 1099–MISC to IRS. If you file Forms 1099 electronically (not by magnetic media), your due date for filing them with the IRS will be extended to March 31. The due date for giving the recipient these forms is still February 2.

Fishermen. If at least two-thirds of your 2002 or 2003 gross income was from fishing, you can file your 2003 Form 1040 by this date and pay your tax in full without incurring an estimated tax penalty.

Fishermen. If you have not filed your Form 1040, you should file it by April 15 and pay your tax in full. If you need more time to file, you can request an extension of time to file with Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, or you can get an extension by Internet or phone.

More information. For more information on important dates, see When Do Fishermen Pay Estimated Tax and File Tax Returns, later.

Useful Items - You may want to see:

See How To Get Tax Help near the end of this publication for information about getting publications and forms.

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