55.04.010 Indian General Welfare Benefits

Programs that meet the following criteria for exemption under IRS Code Section 139E shall be treated as non-taxable Assistance under the General Welfare Exclusion without the applicant having to demonstrate individual need.

(a) General Criteria for Qualification under IRS Code Section 139E: Each payment made or service provided to or on behalf of a Member (or any Spouse or Dependent of the Member) pursuant to a Program under this title shall be treated as non-taxable Assistance under the General Welfare Exclusion so long as the following criteria are met:

(1) The Program is administered under specified guidelines and does not discriminate in favor of the members of the governing body of the Tribe;

(2) Program benefits are available to any Tribal Member who meets such guidelines;

(3) Program benefits are for the "promotion of the general welfare";

(4) Program benefits are not Lavish or Extravagant; and

(5) Program benefits are not Compensation for services.

(b) Ceremonial Activities: Any items of cultural significance, reimbursement of costs, or cash honorarium for participation in cultural or ceremonial activities for the transmission of tribal culture shall not be treated as Compensation for services.

(c) Special Effective Dates: IRS Code Section 139E is effective for Assistance in taxable years for which the period of limitations on a refund or credit under IRS Code Section 6511 has not expired. If the period of limitation on a refund or credit resulting from the application of IRS Code Section 139E (a) would otherwise expire before the one-year period beginning on the date of the enactment of IRS Code Section 139E, a refund or credit (to the extent attributed thereto) may be made or allowed if a claim is filed before the close of such one-year period.