Nineteenth Century Indian Treaty Offers No Federal Tax Exemption

A Chippewa tribe member’s self-employment income isn’t exempt from federal income tax under a treaty between the tribe and United States, the Eighth Circuit said Friday.

The IRS determined liabilities against Frank Bibeau, an enrolled member of the Minnesota tribe, after he didn’t pay 2016 or 2017 self-employment tax on income from his law practice. Bibeau appealed after failing to convince the US Tax Court that the 1924 Indian Citizenship Act and 1837 US-Chippewa treaty contain specific federal taxation exemptions.

Bibeau argued that Congress must expressly authorize the federal taxation of Indians before levying tax, and that the 1924 law ...