Wednesday, May 22, 2013

I.R.S SLAMS Miccosukee Indians for $170 MILLION in Tax Liens For Failing to PAY

We wrote about this story in October 2012:Another Crack in the Sovereignty Dam
Now the IRS has lowered the book.

The Internal Revenue Service has slammed the Miccosukee Indians with a bill of $170 million for the West Miami-Dade tribe’s failure to report and withhold taxes from its distribution of gambling profits to tribal members, according to court records.

In a long-running battle, the IRS also has smacked hundreds of the tribe’s members with separate bills totaling $58 million for their failure to pay personal income taxes on those distributions during the same period, 2000 to 2005, records show.

The agency’s crackdown comes after years of fighting with the 600-member tribe over its refusal to pay taxes on the distribution of profits from its casino operation off the Tamiami Trail. The assessments for back taxes, interest and penalties, outlined in federal tax lien notices filed in Miami-Dade Circuit Court, reveal for the first time the sheer scope of the tribe’s tax problems with the IRS.

Without the extras, the tribe’s withholding taxes alone for 2000 to 2005 totaled $45 million, and individual members’ taxes amounted to $30 million for that period, according to the tax liens.

The tax obligations of the tribe and its members are expected to soar because IRS examiners also are auditing the Miccosukee’s gambling distributions for the years 2006-2010, when payouts to each member were as high as $160,000 annually.

Despite the audits, the Miccosukee Tribe continues to argue that it does not have to withhold taxes on the gaming distributions and that individual members do not have to pay taxes on the income derived from the Miccosukee’s bingo-style slot machines and poker.

“The Miccosukee people will continue to pay all applicable lawful taxes, as they always have, and we will continue our efforts to find a fair and workable solution to this dispute,’’ Chairman Colley Billie wrote in a statement to The Miami Herald Tuesday.

“The Miccosukee people, however, will not be intimidated or coerced by these tax liens into surrendering tribal sovereignty or principles for which so many of our ancestors have paid a very high price in blood, lives, and tears.’’

Read more HERE


Anonymous said...

Why don't the Feds just shut them down?..

Anonymous said...

Without knowing all the details, it's kind of difficult to make a call here! The chances of the fed's collecting on this huge debt seems sort of minimal. However, the federal government is extremely powerful and resourceful and believe me, if they want to turn the heat up on the Miccosukee people they will! Great job here, thanks! Here is some other info I found useful:

Anonymous said...

Wonder way asks "what is the difference between being taxed for $1200. jackpot win mandatory as to a Tribal Council writing themselves a 250K payout for Years of Service tax-free by using another account instead of using Gaming Revenue? Why didn't they go after the Sag Chips for doing this? Does the IRS discriminate among wealthy Indian Tribes? Can anyone distinguish between the two payouts?

Pat said...

Oops, I was asking Anonymous these questions, from "Wonder Why," instead of "Wonder way." Sorry, but what is the difference, how money amounts are treated differently by the IRS?

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