IRS

IRS Finalizes Tribal General Welfare Benefits Rule

Matthew L.M. Fletcher

Here:

Final RuleDownload

IRS Throws Open Door to Tribal Participation as Owners of Renewable Energy Projects

Matthew L.M. Fletcher

Here is the ruling:

IRS Tribal Ruling

Thanks to John Marciano who sent this along, and wrote it up here.

IRS Issues Proposed Guidelines on “Essential Government Function” and “Commercial Activities” Test

Kate Fort

Here is the federal register announcement of the proposed rule making, and here is an analysis of the proposal.

Court Order in Miccosukee IRS Tax Summons Case

Matthew L.M. Fletcher

Here: DCT Order Partially Granting US Motion.

Original Miccosukee petition to quash here, and briefs here.

IRS Chief Counsel Issues Memorandum re: Tribal Tax-Exempt Bonds

Matthew L.M. Fletcher

AM2009-014

An excerpt:

This memorandum addresses the interaction between tribal economic development bonds under
§7871(f) of the Internal Revenue Code (“Tribal Economic Development Bonds”) and build America
bonds under § 54AA (“Build America Bonds”). This memorandum should not be used or cited as
precedent.

ISSUE
Can an Indian tribal government that has received an allocation of volume cap pursuant to §7871(f)
(1) of the Internal Revenue Code (the “Code”) to issue Tribal Economic Development Bonds elect
under § 54AA(d)(1)(C) to issue those bonds as Build America Bonds instead of issuing the bonds as
tax-exempt bonds under §103?

CONCLUSION
An Indian tribal government that has received an allocation of volume cap pursuant to §7871(f)(1) to
issue Tribal Economic Development Bonds can elect under §54AA(d)(1)(C) to issue such bonds as
Build America Bonds instead of issuing the bonds as tax-exempt bonds under §103.

Thanks to J.W. for this!

Tribal Tax Exempt Bonds Allocation Notice

Matthew L.M. Fletcher

notice-09-0051 (pdf)

This Notice solicits applications for allocations of the $2 billion national bond volume limitation authority (“volume cap”) to issue tribal economic development bonds (“Tribal Economic Development Bonds”) under new § 7871(f) of the Internal Revenue Code (the “Code”).  This Notice also provides related guidance on the following:  (1) eligibility requirements that a project must meet to be considered for a volume cap allocation, (2) application requirements, deadlines, and forms for requests for volume cap allocations, (3) the method that the Internal Revenue Service (“IRS”) and the Department of the Treasury (“Treasury”) will use to allocate the volume cap, and (4) certain interim guidance in this area.

IRS Memorandum on Frivolous Tax Arguments

Matthew L.M. Fletcher

“The Truth About Frivolous Tax Arguments”

Of note, Indians can’t avoid federal taxes by claiming to be an “Indian not taxed,” which is not a big surprise.

Case on Federal Taxation of Tribal Trust Funds

Matthew L.M. Fletcher3 Comments

Here, the Citizen Potawatomi Nation paid its chairman using interest from tax-exempt trust funds, expecting the chairman to then be exempt from federal income tax. Not so, according to the IRS — and the Western District of Oklahoma agreed.

Here are the materials:

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