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Per capita payments from trust funds held by the Department of the Interior

The Department of the Treasury and IRS issued interim guidance regarding per capita distributions made to members of Indian tribes from funds held in trust by the Secretary of the Interior. In response to feedback from tribal nations, the guidance clarifies that, generally, these per capita payments will not be subject to federal income tax.

The interim guidance provides an exception to the general rule where taxable income is mischaracterized as nontaxable income.

Treasury and IRS are issuing this notice as interim guidance to allow Indian tribes time to review and provide feedback by September 17, 2014. Based on these comments, we will consider revisions before issuing a final notice.

To ensure consistency in the application of the interim guidance, any issues that may arise at the IRS field level involving per capita distributions will be centrally reviewed at the national level of the IRS Indian Tribal Governments Office.

You can submit your comments by e-mail or regular mail to the follow address:

Internal Revenue Service
CC:PA:LPD:PR (Notice 2014-17)
Room 5203
P.O. Box 7604, Ben Franklin Station
Washington DC 20044


Treasury’s consultation with Indian tribes

Page Last Reviewed or Updated: 04-Mar-2015