28.02.010 General Welfare Exclusions.
(1) The IRS recognizes that assistance provided to beneficiaries under a Tribal program for the promotion of the general welfare of the Tribe is excludable from the gross income of those beneficiaries. In addition, the IRS, in IRS Revenue Procedure 2014-25, provided for safe harbor programs under which, the individual need requirement of the General Welfare Doctrine will be presumed and benefits will be excluded from an individual tax payer’s gross income. Additionally, assistance is not subject to information reporting by the Tribe to the IRS.
(2) Without limitation, the following benefits shall be treated as non-taxable hereunder:
(A) Benefits that satisfy the requirements for the exemption under 26 U.S.C. § 139E;
(B) Benefits that are provided under an IRS Safe Harbor program;
(C) Benefits that qualify for exclusion under the IRS General Test of the General Welfare Exclusion; or
(D) Benefits that meet another express exemption under the Internal Revenue Code.