Tribal Tax Examinations
An examination is an audit. The IRS reviews your accounts and financial information to ensure you are correctly reporting and filing correctly and accurately. An audit does not always suggest that you made a mistake. In some cases in might result in your favor.
The office of Indian Tribal Governments (ITG) conducts examinations under the authority of Section 7602(a) of the Internal Revenue Code, which authorizes the IRS to review books and records necessary to determine federal tax liabilities. This same code section applies to all entities.
If a tribal entity has adhered to the requirements of the law, then an examination will likely not result in a tax change. If we discover an error, we will propose the change in the entity's tax liability. We may also make recommendations for procedural changes avoid problems in future tax periods.
Tribal entities have full taxpayer rights when dealing with the IRS.
Publication 556 - Examination of Returns, Appeal Rights, and Claims for Refunds
Publication 1 - Your Rights as a Taxpayer
The Taxpayer Bill of Rights – All taxpayers have a set of fundamental rights they should be aware of when dealing with the IRS. Explore your rights and our obligations to protect them.
IRS office of Appeals – This independent organization within the IRS helps over 100,000 taxpayers resolve their tax disputes without going to Tax Court. Their mission is to help taxpayers and the Government resolve tax disagreements.
Indian Gaming Regulatory Act - under Title 25 of the United States Code, this applies to the specific regulation of gaming activities by tribes, states, and the National Indian Gaming Commission. It has no impact to the IRS. It operates within Title 26 of the United States Code and contains the relevant taxation provisions affecting tribes.