Alaska State Legislature

News From The House Majority

Ken Freeman, Press Secretary
State Capitol
Juneau, AK 99801
phone: (907) 465-3804
web site: http://www.akrepublicans.org
Actuality line: 1-800-478-6540

Hudson Seeks to Protect Alaska's Fishermen from IRS Permit Seizures

For Immediate Release: April 28, 1997 Contact: Rep. Bill Hudson (907) 465-3744

JUNEAU - Seeking to protect Alaska's fishermen from permit seizures by the federal government is the purpose of legislation passed unanimously by the Alaska State Senate Monday.

"The Internal Revenue Service has been engaging in the outrageous seizure and sales of Alaska commercial fishing entry permits to collect past due taxes," said Representative Bill Hudson (R-Juneau), sponsor of HJR 23.

"I sincerely believe all taxpayers must act in good faith to meet their federal tax obligations, but it is not necessary or prudent to take away a fishermen's basic right to work in order to collect federal taxes," said Hudson.

HJR 23 requests the Alaska Congressional Delegation use any means available to them to ensure that the IRS will collect past due taxes from income generated by the sale of fish and the voluntary sale of entry permits.

Rep. Hudson said this is needed to ensure that the IRS complies with federal law to avoid inflicting economic hardship on a taxpayer, and to protect fishing privileges and Alaska fishermen's right to work.

Hudson noted that the IRS recently sold an entry permit with only two days notice to the State of Alaska. During this sale they sold the permit which was valued at $30,000 for only $5,005. Hudson added that the IRS has threatened to seize seven entry permits in the Dillingham area.

"Commercial fishermen who lose their entry permits are deprived of their ability to make a living. Additionally, fishermen are deprived of their means to earn money to repay their debts to the IRS," said Hudson.

Hudson said Alaskan limited entry permits are use privileges; only the state reserves the right to cancel or modify such privileges without compensation.

"It is certainly in the best interest of the federal government to recoup back taxes through the income earned by entry permit holders rather than to recover an insignificant amount through the sale of Alaska commercial fishing entry permits at 10 cents on the dollar," said Hudson.

Hudson said HJR 23 works in conjunction with HB 123, sponsored by Representative Ivan M. Ivan of Akiak, which extends the termination date of the tax obligation loan program within the Commercial Fishing Revolving Loan Program for three years.

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