indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+ indianz.com on soundcloud
phone: 202 630 8439
Dynamic Homes
Advertise on Indianz.Com
Home > News > Headlines
Print   Subscribe
Law Article: IRS issues guidance on general welfare exclusion

Filed Under: Law
More on: irs, taxation
     

Attorney discusses new guidance from the Internal Revenue Service regarding the Application of the General Welfare Exclusion to Indian Tribal Government Programs That Provide Benefits to Tribal Members:
On June 3, 2014, the IRS released Revenue Procedure 2014-35 providing final guidance for Indian tribal governments regarding the application of the general welfare exclusion to Indian tribal government programs that provide benefits to tribal members and other specified individuals. Largely responding to comments and concerns voiced by tribes and tribal groups regarding the IRS’s preliminary guidance on this topic issued in late 2012, the Revenue Procedure includes within its scope benefits provided to broader categories of non-tribal members than merely spouses and dependents, adding the categories of “former spouse, legally recognized domestic partner or former domestic partner, ancestor, and descendent” of a tribal member. The Revenue Procedure also significantly expands upon the preliminary guidance to provide that a much larger number of commonly provided tribal benefits will be nontaxable under the safe harbors provided for in the guidance. Finally, the Revenue Procedure also clarifies certain ambiguities that tribes and tribal groups identified in the preliminary guidance.

We have created a comparison document that shows the differences between the preliminary guidance and the final Revenue Procedure (additions shown by underscoring, deletions shown by strikeout, and moves shown in green font), which can be found here.

Under the general welfare exclusion, benefits provided by a government to an individual pursuant to a qualified general welfare program are not includible in the individual’s gross income for federal income tax purposes and are not subject to information reporting to the IRS. As the preliminary guidance anticipated, the new Revenue Procedure (1) describes general principles for the general welfare exclusion, (2) provides a number of safe harbors under which the IRS will conclusively presume that the "individual need" requirement for general welfare exclusion is met for benefits provided under a wide variety of housing, educational, elder and disabled, other assistance, and cultural and religious programs, provided that certain general requirements are satisfied, and (3) provides an additional safe harbor under which the IRS will not assert that certain items of cultural significance or nominal cash honoraria provided to certain individuals represent compensation for services, a classification that would prevent general welfare treatment in the absence of the safe harbor.

Get the Story:
Mary J. Streitz: IRS issues final revenue procedure addressing application of general welfare exclusion to tribal government programs (Lexology 6/6)
Username: indianz@indianz.com. Password: indianzcom

Related Stories:
IRS finalizes guidance on general welfare exclusion for tribes (6/3)
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:
Supreme Court hands defeat to tribal interests in sovereignty case (4/25)
Matthew Fletcher: 'Gamesmanship' brings defeat in Supreme Court (4/25)
Supreme Court relists petition in Gun Lake Tribe gaming land case (4/25)
Native Sun News Today: Groups fight uranium mining in Black Hills (4/25)
Cronkite News: Budget deadline falls on Donald Trump's 100th day (4/25)
Mary Annette Pember: Indian Child Welfare Act heals our families (4/25)
André Cramblit: Tribes must make language survival a top priority (4/25)
Pojoaque Pueblo loses big decision in gaming dispute with state (4/24)
Supreme Court takes no action on long-running tribal land case (4/24)
Yakama Nation landowners see $68M in Cobell buy-back offers (4/24)
Tim Giago: Sovereignty at risk with Donald Trump in White House (4/24)
Mark Trahant: Donald Trump & Republicans can't seem to govern (4/24)
Native Sun News Today: Chickasaw citizen donates prom dresses (4/24)
Steve Russell: The BEST advertisement for education in America (4/24)
Arlana Bennett: Picking cans with my father became our tradition (4/24)
Terese Mailhot: Maybe some people should be able to play Indian (4/24)
Charles Kader: Tribal communities still face threats to their lands (4/24)
3rd suspect sought in connection with death of elderly Native man (4/24)
Mashantucket Tribe expresses interest in growing industrial hemp (4/24)
Shutdown of federal government looms ahead of April 28 deadline (4/24)
Confederate monuments start coming down as Jackson stays put (4/24)
Blackfeet Nation citizens approve historic water rights settlement (4/21)
Native Sun News Today: Cheyenne River Sioux woman still walking (4/21)
James Giago Davies: Our future is not bleak but bright with promise (4/21)
Rosalyn LaPier: Tradition blends with science in tribal communities (4/21)
Simon Moya-Smith: Media continues to peddle in Indian stereotypes (4/21)
Steven Newcomb: Bill in California dehumanizes indigenous peoples (4/21)
American Indian Library Association battles Trump's big budget cut (4/21)
Navajo Nation citizen faces death penalty for murder of tribal officer (4/21)
Meskwaki Tribe diversifies economy with barbecue sauces and more (4/21)
Aquinnah Wampanoag Tribe must keep fighting despite gaming win (4/21)
Native Sun News Today: Body of missing Cheyenne River man found (4/20)
Ivan Star Comes Out: True tribal histories are concealed in America (4/20)
Steve Russell: Thoughts about sovereignty and tribal governments (4/20)
Dwanna Robertson: Dispelling a common myth about tribal gaming (4/20)
Whiteclay liquor stores ordered to shut down after losing licenses (4/20)
Cherokee Nation blames pharmaceutical industry for opioid crisis (4/20)
Eastern Cherokee citizens back chief amid call for impeachment (4/20)
North Carolina woman punished for abducting Cherokee children (4/20)
Ramapough Lenape Nation denied permit for anti-pipeline camp (4/20)
Ho-Chunk Nation remains confident as rival tribe sues over casino (4/20)
Nottawaseppi Huron Band invests casino funds in unique project (4/20)
Pechanga Band reaches midway point of $285M casino expansion (4/20)
More data needed to address human trafficking in Indian Country (4/19)
Senate Indian Affairs Committee set for 1st field oversight hearing (4/19)
Navajo Nation Council rejects bill to change name to 'Dine Nation' (4/19)
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.