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ITG FAQ #5 Answer-What are the requirements for income to be exempt by an Indian allottee from restricted allotted land held in trust?

Income will be recognized as exempt where each of the following tests is met:

  • The land in question is held in trust by the U.S. Government.
  • Such land is restricted and allotted and held for an individual non-competent Indian, and not for a tribe.
  • The income is derived directly from the land.
  • The statute, treaty, or other authority involved shows congressional intent that the allotment be used as a means of protecting the Indian until such time as he becomes competent, and
  • The authority in question contains language showing congressional intent that the land, until conveyed in fee simple to the allottee, is not subject to taxation.

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Page Last Reviewed or Updated: 02-Aug-2016