New guidance: Tribal general welfare exclusion The U.S. Department of the Treasury (Treasury) and the Internal Revenue Service (IRS) have issued a Notice of Proposed Rulemaking (NPRM) PDF to implement section 139E of the Internal Revenue Code, created by the Tribal General Welfare Exclusion Act of 2014 (Act). Additionally, Treasury announced it will hold Tribal consultations on the proposed rule on November 18, 19, and 20, 2024, at 1 p.m. ET. Treasury is accepting written comments received by December 17, 2024, 11:59 p.m. Alaska Time. Please submit written comments at tribal.consult@treasury.gov. Treasury and IRS issue proposed regulations providing clarity regarding the federal tax classification of entities entirely owned by Tribal governments The Department of the Treasury and the Internal Revenue Service issued proposed regulations addressing the federal tax classification of corporations or LLCs that are owned entirely by Indian Tribal governments (Tribes) and formed under the laws of the Tribes that own them. Under the proposed regulations, Tribal law entities that are entirely owned by Tribes would not be recognized as separate entities for federal tax purposes and would not be subject to federal income tax. The proposed regulations would also clarify that Tribal law entities entirely owned by Tribes may receive the value of certain energy credits under the Inflation Reduction Act. Until the final regulations are published in the Federal Register, Tribes and related entities may generally rely on these proposed regulations. Treasury and IRS encourage interested parties to submit comments on this guidance through Regulations.gov. Please indicate IRS and REG-113628-21 in the submission. Also, written comments may be mailed to: Internal Revenue Service CC:PA:01:PR (REG-113628-21), Room 5203 P.O. Box 7604, Ben Franklin Station Washington, DC 20044 Treasury is accepting written comments received by January 7, 2025, 11:59 p.m. Alaska Time. Additionally, Treasury announced it will hold Tribal consultations on the proposed rule on December 16, 17, and 18, 2024, at 1 p.m. ET. Find tax information for Native American tribal governments and members, including tax law, filing and reporting requirements, employment tax and more. Find how we can help you in the IRS Office of Indian Tribal Governments. Upcoming events Nonemployee payments (Form 1099) Free Webinars for Indian Tribal Governments You’re invited to join us for free webinars hosted by the Office of Indian Tribal Governments. There will be two identical sessions. During the webinars we will review federal tax responsibilities for nonemployee payments for tribes and tribal entities, using information from: Publication 4268, Employment Tax for Indian Tribal Governments PDF. We will also cover basic information for accounts payable employees and those responsible for filing Forms 1099 and Form 945, particularly those new to their positions. Topics include: Introduction to nonemployee payment reporting Independent Contractor or Employee? Reporting Payments to Independent Contractors (Forms 1099) Form 945, Annual Return of Withheld Federal Income Tax Deposit Rules Gaming Per Capita Payments Electronic Filing – new requirements Registration is required for the webinars. There is a different link for each session. Dates and times: Session 1: Wednesday November 6, 2024 Time: 12 p.m. – 4 p.m. (Eastern time)/9 a.m.–1 p.m. (Pacific time) Register for Session 1 Session 2: Wednesday November 13, 2024 Time: 12 p.m. – 4 p.m. (Eastern time)/9 a.m.– 1 p.m. (Pacific time) Register for Session 2 Once you have registered you will receive a confirmation email. Note: If you don’t see the confirmation email, check your junk email folder. Please open the attachment in the confirmation email, when prompted choose yes to open the calendar invitation and then accept to add the invitation to your calendar. IRS offers office hours for help with the pre-filing registration process for elective payment and transfer of clean energy and CHIPS credits Registration for office hours is open. Registration is required and can be completed by clicking on the links below. Date Time Register November 6, 2024 1-3 p.m. Eastern time Register November 13, 2024 1-2:30 p.m. Eastern time Register Recent developments – Clean energy credits Clean energy tax credit benefits available Government and tax-exempt entities can now benefit from clean energy tax credits with new options enabled by the Inflation Reduction Act of 2022. Find out about elective pay and transferability of clean energy tax credits. Publication 5884, Inflation Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS) Pre-Filing Registration Tool - User Guide and Instructions PDF The IRA and CHIPS Act Pre-filing Registration Tool overview video For more information on available credits for elective pay, refer to IRS Publication 5817-G, Clean Energy Tax Incentives: Elective Pay Eligible Tax Credits PDF. Publication 5817-F, Elective Pay for Indian Tribal Governments PDF Form 990-T for Elective Payment Election Only Presentation - new instructional video This video explains how applicable entities, including certain Indian tribal governments, that only need to file Form 990-T to make an elective payment election, complete Form 990-T and related returns. Tax law and guidance Current tax law information. Internal Revenue Code Sections 7871, 7873 Private letter rulings Tribal general welfare guidance Frequently asked questions and answers Tribal governments Taxable income and filing and reporting requirements. Tax status of tribes Tribal tax examinations Information returns PDF Tribal members Help for filing tax returns. Income Tax Guide for Native American Individuals & Sole Proprietors, Publication 5424 PDF Volunteer Income Tax Assistance (VITA) Gaming and casinos Casinos, gaming and withholdings. Gaming revenue distributions BSA Reporting Requirements for Casinos, Title 31 Gaming Tax Law & Bank Secrecy Act Issues for Indian Tribal Governments, Publication 3908 PDF ITG Sports Wagering Tax Requirements Presentation video Employment tax Reporting, deposits, due dates and online tools. Electronic filing and e-services available Employment taxes for tribes Helpful Hints for Indian Tribes and Tribal Entities to Avoid Penalties on Federal Tax Deposits & Information Returns, Publication 5343 PDF Employment Tax for Indian Tribal Governments, Publication 4268 PDF How to avoid ITG employment tax penalties (YouTube) Coronavirus and Economic Impact Payments: Resources and guidance COVID-19 Business Tax Relief Tool Voluntary Classification Settlement Program (VCSP) Apply for an Employer Identification Number Online video Get help Indian tribal tax assistance and services. Taxpayer Advocate Service Contact us Report abusive schemes Tribal consultation ITG Resources (YouTube) Stay current News, events and opportunities. Tax-Exempt and Government Entities - Program & Accomplishments Letters Upcoming and past events Indian Tribal Government News Sign up for newsletter Yellen v. Consolidated Tribes of the Chehalis Reservation, et al. PDF Our mission: To provide Indian tribal governments top quality service and respect while helping them understand and comply with applicable tax laws. About us The ITG office provides customers quality service by helping them understand and comply with applicable tax laws and protecting the public interest by applying the tax law. Our goal is to meet the needs of both the Indian tribal governments and the federal government, and to simplify the tax administration process. Tribal government specialists work in locations near the seats of tribal governments. Our specialists can address issues that relate to tribal governments as employers, distributions to tribal members, and the establishment of governmental programs, trusts and businesses. Visit the Individuals page for information that may assist individual tribal members. Contact the IRS Office of Indian Tribal Governments if you need further clarification.
