The Internal Revenue Service recognizes that benefits to recipients under a legislatively provided approved program for the promotion of the general welfare of the Yurok Tribe are excludable from the gross income of those recipients. In addition, the Internal Revenue Service, in IRS Revenue Procedure 2014-35, provided for safe harbor programs under which, if approved and in writing, need would be presumed and benefits would be excluded. The benefits authorized by this chapter are intended to qualify for such favorable tax treatment under the General Welfare Doctrine to the fullest extent permitted by law.
(a) Assistance authorized by this chapter shall be an unfunded arrangement for tax purposes and shall be limited to funds appropriated, at the discretion of the Tribal Council. All amounts budgeted by the Yurok Tribe for assistance shall remain general assets of the Tribe until such payments are disbursed.
(b) Benefits are not subject to information reporting by the Tribe to the Internal Revenue Service.
(c) Without limitation, the following benefits shall be treated as nontaxable hereunder:
(1) Benefits that satisfy the requirements for the exemption under Internal Revenue Code Section 139E;
(2) Benefits that are provided under an IRS safe harbor program;
(3) Benefits that qualify for exclusion under the IRS General Test of General Welfare Exclusion; or
(4) Benefits that meet another express exemption under the Internal Revenue Code, such as the exemption provided for Tribal medical expenses under Internal Revenue Code Section 139D, or that meet other recognized exemptions including, for example, resource or land-based exemptions under 25 U.S.C. §§ 117a, 117b, 1407, and 1408.