IRS Logo
Print - Click this link to Print this page

ITG FAQ #9 Answer-A tribe has a separate entity under IRC Section 501(c)(4) which they don't control. Is it subject to FUTA?

A tribal government is a federally recognized tribe with its own Employer Identification Number (EIN). They have a separate entity with a different EIN and an exemption under IRC Section 501(c)(4). One or more of the tribal council members sit on the board, but the exempt organization makes its own decisions. The tribal government does not control it. Is the entity subject to FUTA?

Yes. The entity must file Form 940 and pay FUTA. The facts suggest this entity is wholly independent from the tribe. Although the tribal council may have some representation on the entity’s board, the entity is structured so to be able to operate wholly independent of the tribe.

Return to List of FAQs

Page Last Reviewed or Updated: 02-Aug-2016