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SILETZ NewS Confederated Tribes of Siletz Indians Vol. 42, No. 10 October 2014 Siletz News Confederated Tribes of Siletz Indians P.O. Box 549 Siletz, OR 97380-0549 Presorted First-Class Mail U.S. Postage Paid - Permit No. 178 Salem, OR Delores Pigsley, Tribal Chairman Brenda Bremner, General Manager and Editor-in-Chief Courtesy photo by Ann Goddard Ian Kelley carries the eagle staff as nightfall approaches on the first day of this year’s Run to the Rogue. See more photos on pages 9-12. Congress passes Tribal General welfare exclusion Act, which bans taxes on health care, education, housing and legal aid provided by Tribes WASHINGTON – On Sept. 18, the U.S. Senate passed H.R. 3043, the Tribal General Welfare Exclusion Act, by unani- mous consent. On Sept. 16, the measure passed the House of Representatives by voice vote. The Tribal General Welfare Exclusion Act will fully recognize that Indian Tribes – as sovereign nations – are responsible for making certain their government pro- grams and services best fit the needs of their citizens, just as other local govern- ments across the country do. For years, Indian Tribes have been taxed for providing health care, educa- tion, housing or legal aid to those in need. Local and state governments throughout the United States frequently offer such services to those who need assistance, but the people receiving help are not taxed by the IRS. The path to this legislation began in 2005 when the Internal Revenue Service Office of Tribal Governments began an aggressive audit campaign against Tribes, finding that programs and services provided by Tribal governments to their citizens were a form of taxable income and imposing penalties against Tribes for failing to issue 1099 forms. Even though no federal, state or local government programs were subject to the same taxation, the IRS grew increasingly strict, alleging that backpacks provided to schoolchildren or travel provided to Elders for health care were a form of taxable income. As these audits spread from Tribe to Tribe, Tribal leaders became increasingly unified and vigorously opposed. The IRS responded with guidance in Revenue Procedure 2014-35 that set up a series of “safe harbors” for Tribal pro- grams and services. The guidance is very helpful, but Tribal leaders have remained concerned that IRS field offices have been inconsistent in recognizing Tribal govern- ment status and receive little training. Once signed into law, the Tribal Gen- eral Welfare Exclusion Act will: • • • • • Mandate Tribal government pro- grams, services and benefits autho- rized or administered by Tribes for Tribal citizens, spouses and depen- dents are excluded from income as a “general welfare exclusion” Clarify that items of cultural signifi- cance (e.g., paying someone to lead sacred Indian ceremonies) or cash honoraria provided by Tribal govern- ments shall not represent compensa- tion for services and shall be excluded from taxable income Direct the Secretary of Treasury to require education and training of IRS field agents on federal Indian law and the unique legal treaty and trust relationship between the government and Tribes Establish a Tribal Advisory Com- mittee within the Treasury to advise the secretary on matters of Indian tax policy Temporarily suspend all audits and examinations of Tribal governments • • and members until the education and training measures are completed Authorize the secretary to waive any penalties or interest imposed on Indian Tribal governments or members Direct the secretary that any ambi- guities in applying this act shall be resolved in favor of Tribal govern- ments and deference shall be given to Tribal governments for the programs administered and authorized by the Tribe to benefit the general welfare H.R. 3043 was sponsored in the House by Representatives by Devin Nunes (R-CA). The Senate companion bill, S. 1507, was sponsored by Sen. Heidi Heitkamp (D-ND) and Sen. Jerry Moran (R-KS). According to the National Congress of American Indians, this is a statement to the work of Tribal leaders over the years that See welfare on page 4
