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April 2014 Edition of Indian Tribal Governments News

ITG News Home Page

  • Director’s message
  • Social Security Administration contacts
  • Form 11-C due July 1
  • Protect yourself from Identity Theft
  • Taxpayer Advocate Service recommendations
  • What can an ITG Specialist do for you?
  • Outreach update
  • Arizona training opportunities
  • Pacific Northwest training opportunities

 

 

Director’s message

As we are in the midst of tax season, we have provided some articles to help you during the filing season.

The IRS and ITG are working hard to improve our service to you. We’ve included some very important information we hope you’ll share with your Tribal members to protect themselves from identity theft.

We mentioned in the January edition about our efforts to use more virtual technologies for our outreach and training efforts. Send us an e-mail and let us know if you have suggestions regarding topics that would help you.

Sincerely,

Christie Jacobs
Indian Tribal Governments Director

 

Social Security Administration contacts for payroll purposes

The Regional Employer Services Liaison Officers are available to provide assistance with all questions about the agency's payroll reporting processes and applications. The Social Security Administration’s website provides a complete listing by state.

 

Form 11-C due July 1

July 1, 2014 is the due date for Form 11-C for the period July 1, 2014 through June 30, 2015.

Tribes selling paper pull-tabs are required to file:

  • Form 11-C, Occupational Tax and Registration Return for Wagering; and
  • Form 730 Monthly Tax Return for Wagers.

Form 11-C is an annual return that applies to both the principal and the agent(s) receiving taxable wagers whether they receive compensation or are volunteers. Both the tribal government and agents (persons who accept taxable wagers on behalf of the tribe) must file Form 11-C to register and to pay the occupational tax before wagers are accepted and annually thereafter. Each agent has a unique Employer Identification Number (EIN) for purposes of the Form 11-C Occupational Tax. Generally, the amount of the occupational tax is $50 per year per person.

Form 730 is a monthly return that tribes must file by the last day of the month following the month for reporting taxable wagers. The wagering tax is for gross wagers (paper pull-tab sales) received. It is based on the total amount received before any payout of prizes or other expenses.

 

Protect yourself from Identity Theft

ITG recommends you read the Dirty Dozen Tax Scams for 2014. This guide will help you protect yourself from a variety of scams and attempts to steal your identity.

 

Taxpayer Advocate Service recommends guidance regarding Tribal governments

In the 2013 Annual Report to Congress the National Taxpayer Advocate (NTA) recognizes ITG as the IRS’s primary contact for all federally recognized tribes. The report also acknowledges that ITG is the IRS’s conduit for all federal tax matters regarding tribes.

ITG assigns specialists to work directly with Indian tribes to ensure the IRS applies federal tax laws with integrity and fairness. ITG has worked hard to make sure the IRS handles processes such as refunds more efficiently and expediently. To access the section of the NTA’s report that addresses issues of Indian Tribal Taxpayers, read this report.

 

What your ITG specialist can do for you?

ITG assigns trained specialists to work with federally recognized tribes to resolve federal tax issues and gather information.

Outreach: Brief telephone training tailored to your needs; and periodic ITG workshops on popular tax subjects and compliance activities.

Compliance Checks:  Review your policies and procedures, IRS forms you have filed, and discuss ways to help you improve employment tax compliance or casino anti-money laundering policies and procedures.

Telephone Assistance: Get answers about compliance issues, research account history and aid in responding to IRS correspondence.

Tip Agreements: Establish or renew a tip agreement for your casinos and restaurants. Tip agreements help ensure proper tip income reporting and withholding to avoid future compliance problems.

Examinations: Selected by the IRS for an exam? Your specialist will perform the exam to ensure your rights and government-to-government protocol is preserved.

BSA (Bank Secrecy Act) Examinations: Your specialist will be present for the initial and closing interviews with the assigned examining agent to ensure your rights and government-to-government protocol is preserved. They may be available to discuss the exam findings and suggest improvements.   

Penalties: In certain circumstances, your specialist can help.

For example, if you

  • made a deposit to the wrong quarter and have incurred late penalties;
  • receive a mismatch notice from the IRS (Notice CP2100 or 972CG); or
  • missed filing or depositing deadlines:

Your ITG specialist can help you

  • correct errors to your account;
  • make recommendations for responding to notices;
  • suggest ways to strengthen your policies/procedures to avoid future penalties; or
  • assist you in paying and satisfying penalties you owe to avoid further collection actions

Collection Assistance: If an IRS collection agent contacts you, request your ITG specialist to assist you with the following:

  • Ensure that your rights and protocols are protected and followed
  • Ensure that you understand your responsibilities and payment options/requirements
  • Work with the collection agent so he or she understands the unique issues and protocols of Indian Tribes

You can find additional resources at by visiting our home page.

 

Outreach update: Pacific Northwest

Snoqualmie, Washington: Basic/Advanced Employment Tax and Gaming Workshop. ITG specialists presented this workshop January 7-9 to over 20 individuals from various tribes. Topics covered included computing the correct taxes for payroll; making federal tax deposits; due dates on tax returns.

Anchorage: Basic Employment Tax/Pull Tab Gaming Workshop. ITG offered the annual training as two different sessions on March 24 - 27 and March 31 - April 3. The first day presented topics for pull tab, bingo, and gaming issues. The remaining days dealt with employee issues and information reporting.

Throughout the two different sessions, 68 individuals attended. Below is the attendee representation:

  • Thirty-two tribal governments (52)
  • Three municipal governments (5)
  • One regional nonprofit (2)
  • Three corporations (6)
  • Three from the State of Alaska (3)

ITG Specialists from the Anchorage office presented the workshops. The state of Alaska Department of Revenue Tax Division (Gaming Unit) provided a guest speaker who discussed state gaming issues and regulations. Additionally, the state of Alaska Department of Labor and Workforce Development provided guest speakers who discussed employment issues related to Alaska's unemployment tax filing requirements. The sessions covered topics such as completing Forms 941, W-2, W-3, 1099 and 1096; making federal tax deposits, due dates for tax returns, avoiding penalties and accountable plans.

If you are interested in having an Employment Tax Workshop, a Title 31 Gaming Seminar, or other type of training session, please contact your assigned ITG specialist.

 

Arizona training opportunities

ITG will be offering the following workshop at the IRS office located at 300 West Congress Street, Conference Room B, Tucson, Arizona 85701. Please contact Tricia Miller or Michelle Risk for additional information or to register.

Gaming Issues and Reporting Workshop: Offered twice
April 24, 2014; 9 a.m. to 4:30 p.m.
September 25, 2014; 9 a.m. to 4:30 p.m.

Topics:

  • Required tax reporting for gaming-related payments/activities
  • U.S. residents – W-2Gs, Forms 1099-MISC, 1096, and 5754
  • Foreign persons – Forms 1042, 1042-S, 1042-T, W-7, W-8BEN, and Pub 515
  • Tax deposit schedules
  • Avoiding penalties and interest
  • End of year reconciliation of Forms 945 to W-2G and 1099-MISC and the various 1042 Forms
  • TIP compliance – Form 8027, TRDA and GITCA Tip Agreements
  • Title 31

Mini-Advanced Employment Tax Workshop: Offered twice
May 20, 2014 – May 22, 2014; 9 a.m. to 4 p.m. daily
November 18, 2014 – November 20, 2014; 9 a.m. to 4 p.m. daily

Topics:

  • Defining employees vs. independent contractors
  • Computing the correct taxes for payroll
  • Completing Form 941, Employer's Quarterly Federal Tax Return
  • Making federal tax deposits
  • Due dates on tax returns
  • Completing Forms W-2/W-3 and 1099/1096
  • Reconciling Forms 941 and W-2 at year end
  • Avoiding penalties
  • Meeting rules for an accountable plan for per diem & travel reimbursements
  • The IRS collection process
  • Fringe Benefits & General Welfare payments including job training payments/compensation
  • Loans to Tribal members
  • Loans to employees
  • Election workers
  • Elected officials

 

Pacific Northwest training opportunities

ITG will be offering three workshops for our Tribal customers during June. The training location is 100 SW Main St., Portland, Oregon, Room 975. For more information or to register, e-mail Douglas Wellington or call 360-905-1167. Please respond by May 23, 2014.

Basic Payroll Tax/Information Returns Workshop – June 10, 2014

Topics

  • Employment status (employee or independent contractor)
  • Form W-4 and calculating employment tax liabilities
  • Employee compensation and other employee taxable payments
  • Employment tax deposits
  • Preparation and filing forms 941, 941X and W-2
  • End of year reconciliation of Forms 941 and W-2
  • Social security: E-verify & how to file W-2s electronically
  • Form W-9
  • Preparation and filing of Forms 945 and 1099 and related tax deposits

Advanced Payroll Tax/Information Returns Workshop – June 11, 2014

Topics

  • Independent contractors versus employees
  • Proper reporting of employee related payments
    • 3rd party sick pay
    • Fringe benefits
    • Expense reimbursement
  • Proper reporting for non-employee payments
    • Work experience/training payments
    • Scholarships
    • Expense reimbursement
    • Foreign workers
  • TIN matching
  • IRS exams and information document requests
  • IRS collections and notice process

Gaming Information Return Workshop - June 12, 2014

Topics

  • Required tax reporting for gaming-related payments/activities
  • U.S. residents – Forms 1099-Misc, 1096, W-9, and 5754
  • Foreign persons – Forms 1042, 1042-S and T, W-7, W-8BEN, and Pub. 515
  • Tax deposit schedules
  • How to avoid penalties and interest
  • End of year reconciliation of Forms 945 to W-2G and 1099-Misc and the various 1042 Forms
  • TIP compliance – Form 8027, TRDA and GITCA Tip Agreements

Entity Compliance Checks

We will also be offering the opportunity for the attendees to meet on a confidential basis to discuss their entity’s reporting requirements, tax issues, notices or other tax related matters with an ITG Specialist. Please contact us prior to the training to schedule a time for the meeting.

Page Last Reviewed or Updated: 03-May-2016