IRS Finalizes Tribal Welfare Benefit Income Exclusion Rules (2)

The Treasury Department and IRS finalized rules Monday on determining when a tribal government’s benefit payments to its members can be tax-free.

The rules (TD 10040; RIN 1545-BQ95) provide guidance on the Tribal General Welfare Exclusion Act, a 2014 law that allowed certain welfare benefit payments to be excluded from a taxpayer’s gross income.

That can apply to payments under tribal benefit programs in areas like mortgage assistance, or tribal grants to individuals to start a small business, Treasury said.

Tribal leaders know best the economic needs of their communities, and the rules “provide clear guidelines and reduce ...