your internet resource on facebook on twitter on Google+ on soundcloud
phone: 202 630 8439
Kill The Tobacco Master Settlement Agreement
Advertise on Indianz.Com
Home > News > Headlines
Print   Subscribe
IRS finalizes guidance on general welfare exclusion for tribes

Filed Under: Law | National | Politics
More on: 113th, house, irs, niga, senate, taxation

The Internal Revenue Service has issued final guidance affecting taxation of benefits provided by tribal governments.

Generally, all income and benefits are subject to federal income tax. But the "tribal general welfare exclusion" provides exceptions that are addressed in Application of the General Welfare Exclusion to Indian Tribal Government Programs That Provide Benefits to Tribal Members.

“Today’s guidance provides important clarity for Indian tribes that certain member benefits and services are exempt from federal income tax under the general welfare exclusion," Assistant Secretary for Tax Policy Mark J. Mazur said in a press release. "This guidance was developed as part of our ongoing government-to-government consultation with Indian tribal governments and further demonstrates the administration’s commitment to working with the Native American community and addressing their specific needs.

The notice states that the IRS will "presume" that the exception applies, so long as certain general criteria are met. This appears to address complaints by tribes that the exclusion wasn't treated in a consistent manner.

The exclusion, in general, applies to payments that are: (1) made pursuant to a governmental program; (2) for the promotion of general welfare (i.e., based on need); and (3) not compensation for services.

For example, a medicine man who is provided with a nominal cash payment is not required to report it to the IRS as taxable income. Elders who receive certain benefits, such as meals or transportation, also aren't required to report it.

"We are thankful that the IRS has come as far as it has in this guidance," the National Indian Gaming Association said in a regulatory alert today.

However, NIGA pointed out that the guidance is subject to change and different interpretations. For that reason, tribes are supporting legislation to codify the general welfare exclusion doctrine.

The Tribal General Welfare Exclusion Act has been introduced as S.1507 and H.R.3043.

Related Stories:
Tribes support measure to address general welfare exclusion (09/25)
IRS issues new guidance on general welfare exclusion for tribes (12/6)

Copyright © Indianz.Com
More headlines...
Stay Connected:
On Facebook

On Twitter

On Google+

On SoundCloud
Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Latest News:
Native Sun News: Tribal member speaks out against fracking (11/27)
Lakota Country Times: Rosebud mothers address meth issues (11/27)
Tim Giago: Walk a mile in the moccasins of Native Americans (11/27)
Vince Two Eagles: Focus on being thankful this holiday season (11/27)
Native Sun News: Keystone fighters celebrate permit's defeat (11/27)
Kevin Leecy: Tribes remain a vital segment of our community (11/27)
Steven Newcomb: Even media treats our nations as 'nothing' (11/27)
Ray Cook: Thanksgiving flies in the face of original Americans (11/27)
Terese Mailhot: Racism prevails in American popular culture (11/27)
Ilya Somin: Persistent 'myth' justified taking of Indian lands (11/27)
Ak-Chin Indian Community sued for same-sex marriage ban (11/27)
Cahuilla Band celebrates new travel center at gaming facility (11/27)
Opinion: Don't break promise to Mashpee Wampanoag Tribe (11/27)
Native Sun News: Family questions FBI on reservation death (11/25)
Lakota Country Times: Rosebud students earn top scholarship (11/25)
Brandon Ecoffey: Making a difference for people on Pine Ridge (11/25)
Yurok Tribe: Mourning the passing of 'visionary' Troy Fletcher (11/25)
Ned Blackhawk: Supreme Court case jeopardizes tribal rights (11/25)
Steve Russell: The real origins of the world's terrorism crisis (11/25)
Ramona Peters: Sharing a Wampanoag story of Thanksgiving (11/25)
Yatibaey Evans: Let's all teach the truth about Native history (11/25)
Martie Simmons: Every Native parent dreads this time of year (11/25)
Eric Metaxas: The 'miracle' of Squanto and first Thanksgiving (11/25)
Presidential Medal of Freedom presented to late Billy Frank Jr (11/25)
Oneida Nation opens first branch location of tribal-owned bank (11/25)
Virginia tribes continue to pay tribute required by 1677 treaty (11/25)
Chukchansi Tribe reaches new agreement for shuttered casino (11/25)
Poarch Band to welcome visitors to $65M expansion at casino (11/25)
Stillaguamish Tribe debuts eatery and microbrewery at casino (11/25)
Connecticut tribes consider proposals for third gaming facilty (11/25)
Mark Pilarski: Why are games different at some tribal casinos? (11/25)
Tribes seek support for Native language instruction programs (11/24)
Rep. Mullin confirms divisions in Indian Country on Carcieri fix (11/24)
President Obama to award Medal of Freedom to Billy Frank Jr. (11/24)
Sault Tribe pushes for passage of Tribal Labor Sovereignty Act (11/24)
Lakota Country Times: Charles Trimble recognized for writings (11/24)
Native Sun News Editorial: Some new names in Indian Country (11/24)
Jim Kent: South Dakota lands in the news again for corruption (11/24)
John Yellowbird Steele: Bill tries to hijack recognition process (11/24)
Albert Bender: 'The Green Inferno' hits new low in racist films (11/24)
Peter d'Errico: Anti-Indian wars continue in US Supreme Court (11/24)
Anne Keala Kelly: US government wants to steal Hawaii again (11/24)
Counties ask Supreme Court to hear Ute Tribe boundary case (11/24)
Shinnecock Nation considers entering medical marijuana field (11/24)
more headlines...

Home | Arts & Entertainment | Business | Canada | Cobell Lawsuit | Education | Environment | Federal Recognition | Federal Register | Forum | Health | Humor | Indian Gaming | Indian Trust | Jack Abramoff Scandal | Jobs & Notices | Law | National | News | Opinion | Politics | Sports | Technology | World

Indianz.Com Terms of Service | Indianz.Com Privacy Policy
About Indianz.Com | Advertise on Indianz.Com

Indianz.Com is a product of Noble Savage Media, LLC and Ho-Chunk, Inc.