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.
