SANTA YNEZ BAND OF CHUMASH INDIANS 

P.O. BOX 517 · SANTA YNEZ· CA· 93460 

Tel: 805.688.7997 · Fax: 805.686.9578 

www.santaynezchumash.org 

BlJS ll'iESS CO:\·IMITTEE 

KENN ETH KAHN, CHAIRMAN 

RAUL ARMENTA, VICE-CHAIRMAN 

MAXINE LITTLEJOI-IN, SECRETARY-TREASURER 

MIKE LOPEZ, COMMITTEE MEMBER 

GARY PACE, COMMITTEE MEMBER 

November 18, 2019 

Treasury Tribal Advisory Committee 

Department of the Treasmy 

1500 Pennsylvania Avenue NW, Room 14260 

Washington, DC 20220 

Tribal. Consult@treasury.gov 

RE: Public Comment in advance of December 3, 2019 TT AC meeting 

To the Honorable Treasury Tribal Technical Advisory Committee: 

As the Committee addresses the General Welfare Exclusion (GWE), the Santa Ynez Band of 

Chumash Indians ("Chumash") respectfully requests the following issues be included: 

1. Safe Harbor for Reimbursements 

Chumash requests that guidance under Code Section l 39E continue the position previously taken 

under Revenue Procedure 2014-35 with regard to reimbursements. Revenue Procedure 2014-35 

specifically added reimbursements to the GWE: 

Sec. 2.06 [p. 91 Changes from Notice 2012-75. In response to comments from Indian tribal 

governments and other individuals and groups, this revenue procedure makes the following 

changes from the revenue procedure proposed in Notice 2012-75: 

(2) Section 4.04 clarifies that for purposes of this revenue procedure the term "pay" means 

"pay or reimburse in whole or in part." Conforming changes are made throughout this 

revenue procedure. 

(5) Section 5.01(1) clarifies that a tribal government may provide a benefit described in 

this revenue procedure directly or indirectly, by payment or reimbursement, and in cash or 

property. [p. 1 O] 

Ultimately, reimbursements were added to the definition of"pay" in Rev. Proc. 2014-35: 

SECTION 4. DEFINITIONS 

.04 Pay. The term "pay" means pay or reimburse in whole or in pati. [p. 14] 
2. Treatment of Qualified nonmembers in Rev. Proc. 2014-35 

Chumash requests that guidance under Code Section 139E recognize that benefits "to or on behalf 

of a member of an Indian tribe ( or any spouse or dependent of such a member)" is broad enough 

to cover qualified nonmembers as previously recognized in Revenue Procedure 2014-35 so long 

as such coverage is consistent with the underlying tribal program. Members, for example, may 

owe ce1iain cultural obligations to assist and care for extended family (such as lineal descendants 

or ancestors) so that certain program benefits received by these individuals are "on behalf of' the 

member beneficiary. Chumash requests that the phrase "to or on behalf of' under Code Section 

139E be read broadly to reflect tribal culture, traditions, and practices. The he qualified 

nonmember concept set fo1ih in Revenue Procedure 2014-35 reflected this and should be 

continued. In this regard, Revenue Procedure 2014-35 provides that: 

If section 5.01(1) or 5.01(2) of this revenue procedure applies, the Service will not assert that 

members of an Indian tribe or qualified nonmembers must include the value of the applicable 

benefits in gross income under § 61 or that the benefits are subject to the information rep01iing 

requirements of§ 6041. 

Section 5.01, p. 15. 

The Backgronnd to changes in Rev. Proc. 2014-25 explains that "Section 5.02(2)(d)(ii) replaces 

"spouse or dependent" with "qualified nonmember." Section 2.06(22), p. 13. 

Section 4 provides the following definition of "Qualified nonmember" as follows: 

.05 Qualified nonmember. The term "qualified nonmember" means a spouse, fo1mer spouse, 

legally recognized domestic partner or former domestic partner, ancestor, descendant, or 

dependent of a member of an Indian tribe. 

Section 4.05, p. 14-15. 

After Rev. Proc. 2014-35, Congress enacted Internal Revenue Code ("Code") Section 139E. 

In contrast, Code Section 139E provides that "Indian general welfare" benefits are provided to or 

on behalf of a member of an Indian tribe ( or the spouse or dependent of such member) pursuant to 

an Indian tribal government program are considered to promote the general welfare of the Tribe. 

( emphasis added). 

While Notice 2015-34 clarified that taxpayers may continue to rely on Revenue Procedure 2014-

35 after the enactment of Code Section 139E, there should be regulations to codify that Qualified 

nonmembers are fully included within Code Section 139E. 

Sincerely, 

L~(«- Tribal Chairman 

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