[113th Congress Public Law 168]
[From the U.S. Government Publishing Office]
[[Page 128 STAT. 1883]]
Public Law 113-168
113th Congress
An Act
To amend the Internal Revenue Code of 1986 to clarify the treatment of
general welfare benefits provided by Indian tribes. <<NOTE: Sept. 26,
2014 - [H.R. 3043]>>
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <<NOTE: Tribal General
Welfare Exclusion Act of 2014. 26 USC 1 note.>>
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Tribal General Welfare Exclusion Act
of 2014''.
SEC. 2. INDIAN GENERAL WELFARE BENEFITS.
(a) In General.--Part III of subchapter B of chapter 1 of the
Internal Revenue Code of 1986 is amended by inserting before section 140
the following new section:
``SEC. <<NOTE: 26 USC 139E.>> 139E. INDIAN GENERAL WELFARE
BENEFITS.
``(a) In General.--Gross income does not include the value of any
Indian general welfare benefit.
``(b) <<NOTE: Definition.>> Indian General Welfare Benefit.--For
purposes of this section, the term `Indian general welfare benefit'
includes any payment made or services provided to or on behalf of a
member of an Indian tribe (or any spouse or dependent of such a member)
pursuant to an Indian tribal government program, but only if--
``(1) the program is administered under specified guidelines
and does not discriminate in favor of members of the governing
body of the tribe, and
``(2) the benefits provided under such program--
``(A) are available to any tribal member who meets
such guidelines,
``(B) are for the promotion of general welfare,
``(C) are not lavish or extravagant, and
``(D) are not compensation for services.
``(c) Definitions and Special Rules.--For purposes of this section--
``(1) Indian tribal government.--For purposes of this
section, the term `Indian tribal government' includes any
agencies or instrumentalities of an Indian tribal government and
any Alaska Native regional or village corporation, as defined
in, or established pursuant to, the Alaska Native Claims
Settlement Act (43 U.S.C. 1601, et seq.).
``(2) Dependent.--The term `dependent' has the meaning given
such term by section 152, determined without regard to
subsections (b)(1), (b)(2), and (d)(1)(B).
``(3) <<NOTE: Consultation. Guidelines.>> Lavish or
extravagant.--The Secretary shall, in consultation with the
Tribal Advisory Committee (as established
[[Page 128 STAT. 1884]]
under section 3(a) of the Tribal General Welfare Exclusion Act
of 2013), establish guidelines for what constitutes lavish or
extravagant benefits with respect to Indian tribal government
programs.
``(4) Establishment of tribal government program.--A program
shall not fail to be treated as an Indian tribal government
program solely by reason of the program being established by
tribal custom or government practice.
``(5) 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.''.
(b) Conforming Amendment.--The table of sections for part III of
subchapter B of chapter 1 of such Code is amended by inserting before
the item relating to section 140 the following new item:
``Sec. 139E. Indian general welfare benefits.''.
(c) <<NOTE: 26 USC 139E note.>> Statutory Construction.--
Ambiguities in section 139E of such Code, as added by this Act, shall be
resolved in favor of Indian tribal governments and deference shall be
given to Indian tribal governments for the programs administered and
authorized by the tribe to benefit the general welfare of the tribal
community.
(d) <<NOTE: 26 USC 139E note. Applicability.>> Effective Date.--
(1) In general.--The amendments made by this section shall
apply to taxable years for which the period of limitation on
refund or credit under section 6511 of the Internal Revenue Code
of 1986 has not expired.
(2) <<NOTE: Time period.>> One-year waiver of statute of
limitations.--If the period of limitation on a credit or refund
resulting from the amendments made by subsection (a) expires
before the end of the 1-year period beginning on the date of the
enactment of this Act, refund or credit of such overpayment (to
the extent attributable to such amendments) may, nevertheless,
be made or allowed if claim therefor is filed before the close
of such 1-year period.
SEC. 3. <<NOTE: 26 USC 139E note.>> TRIBAL ADVISORY COMMITTEE.
(a) Establishment.--The Secretary of the Treasury shall establish a
Tribal Advisory Committee (hereinafter in this subsection referred to as
the ``Committee'').
(b) Duties.--
(1) Implementation.--The Committee shall advise the
Secretary on matters relating to the taxation of Indians.
(2) <<NOTE: Consultation.>> Education and training.--The
Secretary shall, in consultation with the Committee, establish
and require--
(A) training and education for internal revenue
field agents who administer and enforce internal revenue
laws with respect to Indian tribes on Federal Indian law
and the Federal Government's unique legal treaty and
trust relationship with Indian tribal governments, and
(B) training of such internal revenue field agents,
and provision of training and technical assistance to
tribal financial officers, about implementation of this
Act and the amendments made thereby.
(c) Membership.--
[[Page 128 STAT. 1885]]
(1) In general.--The Committee shall be composed of 7
members appointed as follows:
(A) Three members appointed by the Secretary of the
Treasury.
(B) One member appointed by the Chairman, and one
member appointed by the Ranking Member, of the Committee
on Ways and Means of the House of Representatives.
(C) One member appointed by the Chairman, and one
member appointed by the Ranking Member, of the Committee
on Finance of the Senate.
(2) Term.--
(A) In general.--Except as provided in subparagraph
(B), each member's term shall be 4 years.
(B) Initial staggering.--The first appointments made
by the Secretary under paragraph (1)(A) shall be for a
term of 2 years.
SEC. 4. <<NOTE: 26 USC 139E note. Audits.>> OTHER RELIEF FOR
INDIAN TRIBES.
(a) Temporary Suspension of Examinations.--The Secretary of the
Treasury shall suspend all audits and examinations of Indian tribal
governments and members of Indian tribes (or any spouse or dependent of
such a member), to the extent such an audit or examination relates to
the exclusion of a payment or benefit from an Indian tribal government
under the general welfare exclusion, until the education and training
prescribed by section 3(b)(2) of this Act is completed. The running of
any period of limitations under section 6501 of the Internal Revenue
Code of 1986 with respect to Indian tribal governments and members of
Indian tribes shall be suspended during the period during which audits
and examinations are suspended under the preceding sentence.
(b) Waiver of Penalties and Interest.--The Secretary of the Treasury
may waive any interest and penalties imposed under such Code on any
Indian tribal government or member of an Indian tribe (or any spouse or
dependent of such a member) to the extent such interest and penalties
relate to excluding a payment or benefit from gross income under the
general welfare exclusion.
(c) Definitions.--For purposes of this subsection--
(1) Indian tribal government.--The term ``Indian tribal
government'' shall have the meaning given such term by section
139E of such Code, as added by this Act.
[[Page 128 STAT. 1886]]
(2) Indian tribe.--The term ``Indian tribe'' shall have the
meaning given such term by section 45A(c)(6) of such Code.
Approved September 26, 2014.
LEGISLATIVE HISTORY--H.R. 3043:
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CONGRESSIONAL RECORD, Vol. 160 (2014):
Sept. 16, considered and passed House.
Sept. 18, considered and passed Senate.
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