WASHINGTON — After more than three decades of pressure from tribal governments seeking relief from IRS uncertainty, the U.S. Department of the Treasury and the Internal Revenue Service on Monday announced that two long-awaited tribal tax regulations have been finalized — a historic move tribal leaders say removes major barriers to economic development and self-governance in Indian Country.
The rules, announced during a meeting of the Treasury Tribal Advisory Committee (TTAC), address two areas tribes have long identified as sources of friction with federal tax authorities: the treatment of tribal general welfare programs and the federal income tax status of business entities wholly owned by tribes.
Taken together, the two rules affect everyday tribal life and tribal economies — from housing, scholarships and emergency aid for individual citizens to how tribes finance,…
