IRC Section 61- PLR



Private Letter Rulings - IRC Section 61
Issue PLR Number
Whether certain payments made to Community members will be exempt from federal taxation under the general welfare doctrine, and whether Community will have any information reporting and withholding requirements with respect to such payments.




Whether tribal housing assistance and certain benefits are excludible under general welfare doctrine.





Whether net revenues from tribal class ll gaming activities may be used to make per capita payments to minor and noncompetent tribal members and when federal income tax is incurred by the recipient or by the Tribe.




Whether economic development grants made to tribal members pursuant to Initiative are excludable from the gross income of those tribal member under the general welfare doctrine. In addition, whether the Nation has any withholding requirements under section 3402(r) of the Internal Revenue Code with respect to the grants.

PLR -199924026PDF



  1. Whether contributions and income to deferred per capita benefit plans will result in taxable income.
  2. Whether the Tribe shall be treated as the owner of the Plan Trusts under section 677 of the Code.
  3. Whether benefits payable pursuant to the Plans will be includible in the gross income of the participants in the Plans in the taxable year or years in which the benefits are actually distributed.




  1. Whether M, a minor, is in receipt of an economic benefit upon the funding of the Trust with the per capita payments, and therefore, under section 61, must include the deposits of the per capita payments in her gross income for the year in which they are made to the trust.
  2. Whether, for federal income tax purposes, M is treated as the grantor of the Trust.
  3. Whether, under section 677, M is the owner of the Trust, and therefore, must include all items of income, deductions, and credits of the Trust in determining her taxable income.




Whether Taxpayer qualifies for retroactive relief, pursuant to section 7805(b) of the Internal Revenue Code, from federal income tax on income earned during the period beginning October 1, 1994, and ending September 27, 1995.




Whether income earned by X, owned by several Indian tribes, from activities conducted within and outside the boundaries of land held in trust by the United States for certain Indian tribes is not subject to federal income tax. X is a corporation incorporated under the law of the state of Y.



Whether amounts paid to carpenter apprentices under the Training Program are includible in the apprentices' gross incomes, and if so, whether such payments are "wages" subject to the federal employment taxes.