The IRS is investigating allegations that the Miccosukee Tribe in Florida distributed millions of dollars in cash from its gaming operation to its tribal members, who never reported it as taxable income, according to a Miami Herald story published yesterday.
The Miami Herald reported that every quarter the tribe used armored vehicles to deliver the cash, totaling up to $10 million, to around 650 members, each receiving approximately $61,000 per delivery. The paper did not say how long the tribe had been doing this.
The tribe has never submitted a plan for distributing casino profits to members to the federal government, which is required under the Indian Gaming Regulatory Act, the paper said.
In a related probe, the IRS is investigating the Miccosukee’s former chairman, Billy Cypress, who allegedly misappropriated millions of dollars from tribal coffers for personal use and never reported it as income.
Whether or not this is true....the sad part is there are many Tribes who struggle just to provide the basic services to Elders and other members who are in dire straights....
ReplyDeleteeveryone know's you have to pay tax's on anything over $1200.00, trying to beat the system always comes back to bit you in the @$$
ReplyDeleteunfortunatley, per capita payments made with gaming revenue is subject to federal income taxes. It will be interesting though to see how the Tribes argument will fare in court, although even if the Tribe prevails, it will not mean that individual Tribal members will not have to pay the taxes on this income.
ReplyDelete