NOTICE To all Tribal Members:
Tribal Council received an IRS notice Thursday (September 6, 2012) concerning the federal income tax treatment of per capita payments that members of Indian tribes receive from proceeds of certain settlements of tribal trust cases between the United States and Indian Tribes
In the case of the Confederated Salish and Kootenai Tribes, this concerns the September 12 settlement payout to Tribal members.
According to IRS Notice 2012-60, “per capita payments made from the proceeds of an agreement between the United States and an Indian tribe settling the tribe’s claims that the United States mismanaged monetary assets and natural resources held in trust for the benefit of the tribe by Secretary of the Interior are excluded from the gross income of the members of the tribe receiving the per capita payments.”
Council had been working with federal officials and agencies seeking clarification on how the IRS would treat the settlement payout to tribal members.
This notice applies to all the Indian Tribes that were part of the $1 billion Salazar settlement.
Download the IRS document by clicking here:
IRS Document (1.4 MB PDF)