IRS CCA: Indian Tribes May Exclude Seafood Trade Relief Program Payments as the Exercise of Fishing Rights (IRC §7873)

Members of a federally recognized Indian tribe who exclude from income fishing rights-related activity under tax code Section 7873 may also exclude payments received under the Seafood Trade Relief Program (STRP) because the STRP payments received by the tribal fisherman are income derived from a fishing rights-related activity of the tribe, as described under Section 7873(a), the Chief Counsel’s Office informally advised. The Chief Counsel’s Office stated that the STRP payments to commercial fisherman are intended to offset the loss of income from fish exports due to retaliatory tariffs imposed by foreign governments and are only offered ...