Wednesday, December 22, 2010

Chumash Tribe Sues IRS for Double taxation

Capitol Weekly tells us that The Santa Ynez Band of Chumash Mission Indians has sued the Internal Revenue Service, claiming the agency double-taxed them and owes them a refund that could total in the millions of dollars

But the tribe maintains that this contrasts with California law, which states that casino income is exempt from taxes, but only if the recipient is a member of the casino tribe, living on the same reservation as the casino itself, or if they are living out of state.

The dispute arises out of the 2003 and 2004 tax years. According to Feldman, the IRS could levy these taxes on these revenues from the tribe or directly from its members in their individual tax returns, but not both.       Read the rest at the link above.

From the Comments:

The Santa Ynez casino is not located on eligible "Indian Lands" as defined in the Indian Gaming and Regulatory Act. It is not and never was a "reservation" although the tribe calls it a reservation and the land has never been brought into federal Indian trust. In fact the tribe and it's casino operation owes back taxes including unremitted sales taxes it has collected from unsuspecting customers thinking they were paying state "sales tax" when that 8 3/4 percent of each sale was pocketed by the tribe. An audit will likely disclosew they owe back property taxes and state income taxes totalling in the millions. Hopefully this latest attempt by the tribe to get a "refund" of taxes will expose the fact that it is the Sanrta Ynez Chumash that still owes millions in upaid taxes and the end result will be that they will be forced to pay them as they should have been long ago. The State and Santa Barbara County (who furnish all of the public services and infrastructure to the tribe, its casino and related businesses, has been deprived of these tax revenues needed to pay for all these public services and infrastructure and which have been a burden on the other non-Indian taxpayers. Maybe now these non-Indian taxpayers will be made whole!

Stay tuned.   But maybe some audits are in order?


Anonymous said...

Looks like Wesley Snipes may get some tribal members as roommates when he serves his tax evasion sentence. The only reason for the Santa Ynez to file this suit against the IRS is that the Tribe expects that the IRS is after them on a bigger matter. Once the IRS Camels nose gets under the tent, no one, and none of the gaming tribes are safe. If you filed a return with tribal1099 income on it, expect a letter in the mail.

Anonymous said...

The comment about the Santa Ynez Chumash's casino not being on their reservation is stupid, the state gambling control board would be on them like white on rice if that were the case. The article said nothing about state taxes it was about federal taxes.
If the tribe was double taxed they should get their refund.

Anonymous said...

Could it be the IRS is beginning to target tribes in order to collect what's due?

Audits could be worthwhile, to make sure that those tribes that have cheated their own people, aren't cheating the taxman.

After all, who can believe those tribes when they say, "we don't owe any taxes". Cheaters are always cheaters.

Anonymous said...

So what do you have against the Chumash tribe?
Or are you just racist and dislike all Indians?

Anonymous said...

Why does someone posting something that has to do with a tribe become racist?

It's just a news article posting. Only a moron boils everything down to racism.... MORON.

Anonymous said...

The racist statement was probably written by Macarro...and are you supposed to agree with tax cheaters just because you are tribal?...when we win jackpots in the casino, they sure give you a tax slip..but the tribes think they should be exempt?...what a double standard...

Anonymous said...

As a Native American I am offended by the comment that Chumash members are going to be Westly Snipes roommate in prison for tax evasion, and that the Chumash people have cheated their own people and are now cheating the IRS!
The article said nothing about tax evasion or people going to prison. The article was about the tribe getting double taxed and wanting a refund.
I think my question was valid;
What do you have against the Chumash tribe? Or are you just racist and dislike all Indians, or maybe just tribes that have gaming?
And to the person who posted the MORON comment;
I've been called worse defending what I feel is right and am entitled to my own opinion.

Anonymous said...

I think anonymous of December 24, 2010 has a good point about the story having nothing to do about anything illegal going on and that is has to do with whether the tribe is entitled to refunds or not.

However,I do think he or she was wrong to play the race card.

Anonymous said...

The article is based on statements made by an attorney for the tribe, presumably in an attempt to present a sympathetic case to the newspapers. Only one side was presented. The IRS was contacted by the reporter and declined to comment on the case. The issue will be resolved in the Courts based on first hand evidence obtained by the IRS and the Tribe and applicable law. All of the people posting comments about this article are entitled to their opinions. However, some opinions appear to be less self-serving than others.