indianz.com your internet resource indianz.com on facebook indianz.com on twitter indianz.com on Google+
ph: 202 630 8439
Kill The Tobacco Master Settlement Agreement
Advertise on Indianz.Com
Home > News > Headlines
Print   Subscribe
Law Article: IRS broadens general welfare exclusion for tribes

Filed Under: Law
More on: irs, taxation
   

Attorneys discuss 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 Internal Revenue Service issued Revenue Procedure 2014-35, which provides final guidance on the application of the general welfare exclusion to Indian tribal government programs. The guidance offers a series of safe harbors applicable to specific types of tribal programs under which the IRS will presume that the "individual or family need" requirement of the exclusion is met. If the requirements of the Revenue Procedure are satisfied, the IRS also will not assert that members of a tribe and "qualified nonmembers" (spouses, dependents, domestic partners, ancestors and descendents) must include the value of governmental program benefits in their gross income, or that the benefits are subject to information reporting by the tribe.

Under the general welfare doctrine, benefits provided to members by tribal governments (like those provided by other governments) typically qualify for exclusion from gross income if they are:

made according to a governmental program
for the promotion of general welfare (based on individual or family need, and uniquely in the case of programs of tribal governments, to help establish Indian-owned businesses on or near a reservation)
not compensation for services

In audits, however, the IRS frequently has refused to apply the general welfare exclusion to tribal programs where the benefits are disbursed on a basis that do not appear to the IRS to be based on need. After a lengthy consultation process with tribal leaders and others, the IRS issued Notice 2012-75 (the "notice"), which contained proposed guidance on the general welfare exclusion. The Treasury and IRS solicited tribal comments on the general welfare exclusion during an extended period and received more than 120 written comments from Indian tribal governments and other individuals and groups. The final guidance incorporated many of these comments by clarifying the safe harbors and broadening their scope.

Get the Story:
Kathleen M. Nilles and Kenneth W. "Ken" Parsons: In final guidance, IRS broadens general welfare safe harbors for tribal programs (Lexology 6/6)
Username: indianz@indianz.com. Password: indianzcom

Related Stories:
Law Article: IRS issues guidance on general welfare exclusion (6/6)
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:

Local Links:
Federal Register | Indian Gaming | Jobs & Notices | In The Hoop | Message Board
Latest News:
Native Sun News: Tribe threw away late veteran's memorabilia (10/31)
Mark Trahant: The Native vote could decide the 2014 election (10/31)
Richard Peterson: Sen. Begich supports Alaska Native issues (10/31)
NCAI investigates conduct of treasurer at annual convention (10/31)
Red Lake News: Tribe welcomes Sen. Tester and Sen. Franken (10/31)
Former chairman of Chippewa Cree Tribe faces more charges (10/31)
Texas couple accused of selling fake tribal membership cards (10/31)
Moapa Band loses bid for $438M solar facility on reservation (10/31)
Passamaquoddy Tribe won't talk with tidal power developers (10/31)
Oregon tribe anticipates May 2015 opening for Class II casino (10/31)
Trial opens in case connected to Choctaw Nation casino work (10/31)
Editorial: Off-reservation gaming project unfair to other tribes (10/31)
Opinion: Menominee Nation exploits loophole to pursue casino (10/31)
Native Sun News: Oglala Sioux officer rejoins Rapid City police (10/30)
Mark Trahant: Native voters must be prepared on election day (10/30)
Kevin Gover: Mascot fight exposes myths about Native people (10/30)
Northern Arapaho Tribe: Newspaper got it wrong on joint council (10/30)
Peter d'Errico: Kevin Washburn honored by Indian law students (10/30)
Chris Deschene still urging Navajo Nation voters to choose him (10/30)
Tribes in North Carolina back Democrat Sen. Hagan in tight race (10/30)
NWPR: Tribes take steps to control growing herds of wild horses (10/30)
Opinion: Helping the Tongva people revive their own language (10/30)
Judge grants injunction to keep Chukchansi Tribe casino closed (10/30)
Tribes in South Dakota would benefit from gaming referendum (10/30)
Employee at Puyallup Tribe's casino gets wedding ring returned (10/30)
Editorial: Keep tribal casinos in California on existing Indian land (10/30)
Column: Menominee Nation off-reservation casino goes ignored (10/30)
Quapaw Tribe faces competition for Kansas commercial casino (10/30)
Native Sun News: Montana tribe sees cut in heating assistance (10/29)
Mark Trahant: Alaska Senate race is a real test of Native policy (10/29)
Winona LaDuke: Taking treaty advice from indigenous nations (10/29)
Vena A-Dae Romero: FDA failing to consult tribal governments (10/29)
Zachary Pullin: Native Americans overcame barriers to voting (10/29)
Navajo Nation president vetoes bill to address language issue (10/29)
Prairie Island Indian Community sues over nuclear waste rule (10/29)
County's letter on CSKT water compact talks stirs controversy (10/29)
Vice: Hip-hop artist Drezus on new journey after jail sentence (10/29)
Opinion: Overcoming stereotypes of Native American culture (10/29)
Charges sought in dispute at Chukchansi Tribe's closed casino (10/29)
Pechanga Band chair featured in ads against North Fork casino (10/29)
Grand Ronde Tribes continue fight against Cowlitz Tribe casino (10/29)
Puyallup Tribe offers reward for return of casino worker's ring (10/29)
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.