Matters involving taxes in Indian country are complex and can involve questions of constitutional law, treaty rights, statutory law, tribal sovereignty, federal policy, and jurisdiction. Tribal economic development efforts, especially gaming, have resulted in an increasing number of proposals to tax tribes. Our Firm has represented clients before Congress, the courts, and the Internal Revenue Service on a wide range of tax issues. Our focus is always on the protection of tribal sovereignty and on the enforcement of the federal promise that trust and restricted lands, and the income therefrom, would be subject to "no charge or encumbrance whatsoever" (which includes taxes).

CONTACT:
Charles Hobbs, Hans Walker, Jr., Michael Roy, Joe Webster, Lee K. Shannon

Achievements and Actions

• Helped defeat proposal by House Ways & Means Committee to apply unrelated business income taxes to tribal governmental revenues

• Successfully defended tribal tax on possessory interests within reservation in Reservation Telephone Cooperative v. Three Affiliated Tribes in tribal court, appeal pending

• Negotiated agreements with the IRS to release tribal funds seized for non-payment of taxes

• Obtained IRS letter ruling to permit the first public financing of an Indian casino through the issuance of tax exempt bonds

• Won a ruling from the bench by a Federal appellate court (4th Circuit) that an Indian was not guilty of evading taxes on motel income from her purchased trust allotments

• Successfully obtained an injunction prohibiting an IRS levy against an Individual Indian Money account in Keechi v. United States

• Successfully represented tribes and an Indian association in negotiating settlements with the IRS over non-payment of payroll and other federal taxes.

Typical Assignments

• Represent tribes in arguing against the imposition of federal taxes on pulltab income

• Provide advice on the taxation of gaming winnings and gaming income distributed to tribal members under per capita plans

• Provide advice on the applicability of employment and business taxes to gaming operations

• Help negotiate tribal-state compacts for the collection of cigarette and fuel taxes

• Advise on tribal power to tax members, non-Indians, and possessory interests

• Negotiate with the IRS in audits, seizure of tribal funds, and rulings of law

• Establish tax status for issuing tribal tax exempt bonds

• Establish tax exempt status of income earned by tribal members for treaty-related activities

• Provide advice on how to structure transactions to avoid federal and state taxes

• Set up tax exempt funds to receive tax-deductible donations

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