[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 1507 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                S. 1507

To amend the Internal Revenue Code of 1986 to clarify the treatment of 
          general welfare benefits provided by Indian tribes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 17, 2013

Mr. Moran (for himself and Ms. Heitkamp) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
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 2013''.

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.
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