Kathleen Nilles: Five ways tribes can reduce taxes for members


Seneca Nation President Maurice John, Sr., speaks at the National Intertribal Tax Alliance in September 2015. Photo by Seneca Nation via NITA / Facebook

Citing the Tribal General Welfare Exclusion Act and new guidance from the Internal Revenue Service, attorney Kathleen M. Nilles offers five ways for tribes to reduce tax liabilities on their members:
Thanks to the passage of recently enacted federal legislation, as well as some favorable IRS administrative rulings and procedures, tribal leaders now have the ability to structure programs and establish plans that can relieve some of the federal and state income tax burdens otherwise imposed on their members. Here are five things that tribal leaders can do in 2016 and beyond that should have a favorable impact on their members' tax bills.

1. Maximize Excludable Benefits and Payments (General Welfare and Other Exclusions)

2. Maximize Distributions Made from Non-Taxable Sources of Tribal Revenue

3. Promote Home Ownership and Charitable Giving

4. Adopt A Deferred Per Capita Savings Plan for Elective Deferrals of Gaming Revenues

5. Conduct a Tax Efficiency Audit of the Tribe's Minors Trust

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Kathleen M. Nilles: Five Things Tribal Leaders Can Do in 2016 to Reduce Taxes on Tribal Members (JD Supra 1/7)

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