Tribal council members are employees
An Indian tribe may pay its members for services they perform as tribal council members. The tribe must report the income as wages to the IRS on Form W-2, Wage and Tax Statement. Though the tribe does not withhold, the tribal council member is still required to pay federal income taxes.
Note: Tribes should not report this income on Form 1099-MISC, Miscellaneous Income PDF.
Reporting tribal council pay
Revenue Ruling 59-34 PDF states that tribes report wages they pay to their members for tribal council member services, but they do not withhold. When you