[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3043 Received in Senate (RDS)]
113th CONGRESS
2d Session
H. R. 3043
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 17 (legislative day, September 16), 2014
Received
_______________________________________________________________________
AN ACT
To amend the Internal Revenue Code of 1986 to clarify the treatment of
general welfare benefits provided by Indian tribes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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. 139E. INDIAN GENERAL WELFARE BENEFITS.
``(a) In General.--Gross income does not include the value of any
Indian general welfare benefit.
``(b) 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) Lavish or extravagant.--The Secretary shall, in
consultation with the Tribal Advisory Committee (as established
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) 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) 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) 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. 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) 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.--
(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. 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.
(2) Indian tribe.--The term ``Indian tribe'' shall have the
meaning given such term by section 45A(c)(6) of such Code.
Passed the House of Representatives September 16, 2014.
Attest:
KAREN L. HAAS,
Clerk.