Indian Tribal Government Tax Matters

Tax News & Information: Indian Tribal Government Tax Matters

Issue Snapshots are IRS employee job aids that provide analysis and resources along with audit tips or issue indicators for technical tax issues. In an effort to keep Indian Tribal Governments updated on recent tax matters, we’ve posted this information to our blog. The most recent Issue Snapshots for Indian tribal government tax matters are:

IRC Section 7873 – Treaty Fishing Rights-Related Income

Certain income from a tribal fishing rights-related activity that’s earned by a qualified Indian entity, or by a tribal member directly or through a qualified Indian entity, is exempt from federal, state and local taxes.

IRC Section 414(d) – Governmental Plans for Tribes

This snapshot discusses the types of retirement plans an Indian tribal government may offer and when those plans may be treated as governmental plans.

Revenue Ruling 59-354 – Tribal Council Members’ Wages

Amounts paid to Indian tribal council members for their tribal council service is includable in gross income; however, they are not considered wages subject to withholding for Social Security, Medicare and federal income tax reporting.

FUTA Exemption for Indian Tribal Governments
Indian tribal governments are exempt from tax under the Federal Unemployment Tax Act (FUTA), provided the tribes are fully compliant with the applicable State Unemployment Insurance. This exemption applies to any subdivision, subsidiary or business enterprise wholly owned by the tribe.

The tribal community can find answers to many questions on IRS.gov/tribes. If you have a question on any tribal tax matter, please visit Contact ITG for a list of ITG offices that may be able to help you. Other tax information that you mind find useful. Check back at MIS Tax Pros periodically to see the latest information regarding Indian Tribal Government Tax Matters. Our blogs are updated regularly to include other important tax matters.

IRS Contact Methods: How the IRS Communicates

These Are the IRS Contact Methods for Taxpayers to Know

Everyone should know the IRS contact methods used to communicate with taxpayers. This will help people avoid becoming a victim of scammers who pretend to be from the IRS with a goal of stealing personal information.

Here are some facts about how the IRS contact methods used to communicate with taxpayers:

The IRS doesn’t normally initiate contact with taxpayers by email.
The agency does not send text messages or contact people through social media.
When the IRS needs to contact a taxpayer, the first contact is normally by letter delivered by the U.S. Postal Service. Fraudsters will send fake documents through the mail, and in some cases will claim they already notified a taxpayer by U.S. mail.
Depending on the situation, IRS employees may first call or visit with a taxpayer. In some instances, the IRS sends a letter or written notice to a taxpayer in advance, but not always.
IRS revenue agents or tax compliance officers may call a taxpayer or tax professional after mailing a notice to confirm an appointment or to discuss items for a scheduled audit.
Private debt collectors can call taxpayers for the collection of certain outstanding inactive tax liabilities, but only after the taxpayer and their representative have received written notice.
IRS revenue officers and agents routinely make unannounced visits to a taxpayer’s home or place of business to discuss taxes owed, delinquent tax returns or a business falling behind on payroll tax deposits. IRS revenue officers will request payment of taxes owed by the taxpayer. However, taxpayers should remember that payment will never be requested to a source other than the U.S. Treasury.
When visited by someone from the IRS, the taxpayers should always ask for credentials. IRS representatives can always provide two forms of official credentials: a pocket commission and a Personal Identity Verification Credential.

More Information:

Tax Tools from IRS Available to Help with Taxes

Tax Tools Are Available Taxpayers Can Visit Irs.Gov for Tools to Help with a Wide Range of Tax Topics

Finding answers to tax questions is only a few key clicks away. Millions of taxpayers use the following self-help tax tools on IRS.gov to easily find what they need:

IRS Free File. Taxpayers with an extension of time to file their return until October 15 can use IRS Free File to prepare and e-file their tax return. Free File allows them to use brand-name commercial tax software at no cost. It is available for anyone with income below $64,000.
Where’s My Refund? Taxpayers waiting for their refund can use Where’s My Refund? to check the status of a refund. This tool is available at IRS.gov or the IRS2Go mobile app. Refund updates are available within 24 hours after the IRS receives the e-filed return or four weeks after the agency receives a mailed paper return.
Paying a tax bill. IRS Direct Pay is the safe, easy and free way to pay taxes or estimated tax directly from a checking or savings account. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find out. The Direct Pay tool has five simple steps to pay in a single online session and is also available with the IRS2Go mobile app.
Tax account online. Taxpayers can use this tool to view their federal tax account balance, select IRS Direct Pay, debit or credit card or apply for an installment agreement. Before accessing their tax account online, taxpayers must authenticate their identity through the secure access process.

Online payment agreement. Taxpayers who can’t pay their taxes in full can apply for an online payment agreement. Using the Direct Debit payment plan option allows certain taxpayers to make monthly payments.
Interactive tax assistant. Taxpayers can find reliable answers to tax questions with the interactive tax assistant. This tax law resource asks a series of questions and immediately provides answers on a variety of tax law topics.
Exempt organizations tool. Anyone looking to make a charitable donation can use the tax exempt organization search tool. This tool allows users to search for and verify a charity’s status. The results include links to check each organization’s federal tax status and filings.
Tax map. Taxpayers can use the IRS tax map to quickly find forms, publications, frequently asked questions and news.

More Tax Tools Available Here

More Information:

Tax Topic 152, Refund information
Tax Topic 161, Returning an erroneous refund – paper check or direct deposit
Tax Topic 203, Refund offsets for unpaid child support, certain federal and state debts, and unemployment compensation debts