DEPARTMENT

LUMMI INDIAN BUSINESS COUNCIL

2665 KWINA ROAD BELLINGHAM, WASHINGTON 98226 (360) 312-2000

DIRECT NO

September 13,2019

VIA EMAIL (tribal.consult@treasury.gov)

To the U.S. Department ofTreasury Tribal Advisory Committee

Re: Comments regarding TTAC Operating Procedures and By-Laws

The Lummi Nation, a federally-recognized Indian nation, submits the following

comments regarding the activities ofthe Treasury Tribal Advisory Committee (“TTAC”), which

was established by Congress under the Tribal General Welfare Exclusion Act of2014, Pub. L.

113-168, 128 Stat. 1883, § 3 (codified at 26 U.S.C. § 139E).

Background. The Act provides the TTAC with a broad mandate -to “advise the

Secretary on matters relating to the taxation ofIndians.” It further provides that the TTAC must 

assist the Secretary ofthe Treasury establish a program for the (A) training and education for

internal revenue field agents who administer and enforce internal revenue laws with respect to

Indian tribes on Federal Indian law and the Federal Government’s unique legal treaty and trust

relationship with Indian tribal governments, and (B) training ofsuch internal revenue field

agents, and provision oftraining and technical assistance to tribal financial officers, about

implementation ofthis Act and the amendments made thereby. Until such time as the education

and training ofIRS agents occurs, all audits oftribal government benefit programs are

suspended.

Congress took action to authorize the Act because ofyears ofefforts by the IRS Office of

Indian Tribal Governments to systematically audit Indians and Indian tribal governments and

assess tax on tribal government benefits, including health care, education, and elders’ benefits.

At the time, this audit activity had generated $205 million in assessments over a five-year period.

The Treasury Inspector General for Tax Administration concluded that while the ITG Office had 

developed a successful program to audit Indians and Indian tribes, it had not developed adequate

performance measures and objectives. See the Report at:

https://www.treasury.gov/tigta/auditreports/2013reports.201310018fr.pdf.

At the time the Act was enacted, the IRS had begun a process ofimplementing a General

Welfare Exclusion by administrative rule. However, it would not halt auditing activity or

provide any advisory committee to ensure accountability. Congress enacted the Act and created

the TTAC to (i) ensure oversight ofthe Treasury Department and IRS to protect Indians and

Indian tribal governments from ITG and IRS auditing efforts, and (ii) support Indian tribal

governments and their economic development through tax policy and related measures under the

Treasury Department’s authority.

Comments on TTAC operating procedures and by-laws. As a general matter, the

Lummi Nation believes that the TTAC should conduct its business in an open and transparent
manner with ample opportunity for input from, and interaction with, tribal leaders. It should

establish a working agenda that addresses the top priorities ofIndian Country and Alaska Natives

relating to taxation and economic development that builds upon the years of effort that has

occurred to date.

I. Consultation Obligation. Pursuant to Presidential Executive Order 13175, the Treasury

Department has an obligation to consult with federally-recognized American Indian or

Alaska Native tribal governments regarding matters that affect them. The Department

has implemented this mandate, which is binding on the TTAC. See

https://home.treasury.gov/policy-issues/tribal-affairs/tribal-consultations.

To effectuate the consultation obligation, the TTAC by-laws should require that—

A. The TTAC will consult with Indian tribal governments and their leaders by

convening a meeting (in person or by teleconference) at least two weeks in

advance ofeach regularly scheduled TTAC meetingforpurposes of(1) updating

tribal leaders on the TTAC's activities and (2) receiving input on matters of

policy concern; and

B. TTAC consultation meetings shall be held at convenient venue where tribal

leaders are likely to attend in large numbers, such as meetings ofthe National

Congress ofAmerican Indians and regional meetings in which tribal governments

are members; and

C. Tribal leaders shall be recognized as designating another tribal official or

representative to participate in consultation on behalfofthe Tribal government;

and

D. Indian tribal governments retain their authority to consult with the Department

independently ofthe TTAC.

II. Full and Informed Participation. The TTAC should ensure that all ofits meetings are

conducted in a transparent manner to allow tribal leader engagement and involvement.

The TTAC by-laws should require that—

A. The TTAC meeting agendas include an item that allows tribal leaders, tribal

organizations, and theirrepresentatives to ask questions and make commentsfor

the record; and

B. TTAC meeting notices shall be provided to tribal leaders and their attorneys and

official representatives at leastfourteen (14) days in advance.

III. Subcommittees. The TTAC has a wide variety ofissues to address, which will be 

challenging for seven Committee members to address on a quarterly basis. It is

recommended that the TTAC establish subcommittees within its by-laws to better

structure the flow ofwork, chaired by a TTAC member with the assistance ofdesignated

individuals. The following standing subcommittees are recommended:
A. GWE Implementation and Field Agent Training this subcommittee would

address the remaining issues associated with implementing the TGWE, including

guidance governing cultural and ceremonial benefits, definition of“lavish or

extravagant” and developing curriculum and training IRS field agents on

principles offederal Indian law;

B. Audit Policy and Enforcement Oversight this subcommittee would review IRS

audit activities including resumption of audits oftribal benefit programs upon

satisfaction offield agent training, current audits oftribal governments by other

means (e.g. payroll or compliance audits), and current IRS enforcement activities

and litigation policy against Indians and Indian tribes;

C. Tribal Consultation and External Relations — this subcommittee would facilitate

effective communications with federally-recognized sovereign Indian nations and

tribes, facilitate coordination between Treasury and other Federal agencies that

affect Indian Country (e.g. DOI, DOL, DOC),

D. Treaty and Trust Responsibility Enforcement this subcommittee would assist

the Treasury Department in fulfilling its treaty and trust responsibilities to Indian

nations and Alaska Natives on tax and economic policy matters;

E. Tribal Tax and Economic Growth Policy — this subcommittee would review

existing federal policy, law and pending federal legislation that relates to Indian

Country economic development, including but not limited to dual tribal-state

taxation, inadequate access to capital and issuance oftax-exempt debt, tax

treatment oftribal entities

IV. Setting Policy Priorities. Tribal governments and our leaders have worked for years

to establish policy priorities for Indian Country in the areas oftaxation and economic

development. The TTAC should not re-commence this policy priority process but

should instead build upon these existing policy priorities. We recommend that the

TTAC base its policy agenda from resolutions adopted by tribal governments, the

National Congress ofAmerican Indians, and regional intertribal organizations like the

Affiliated Tribes ofNorthwest Indians and the United South and Eastern Tribes.

V. No “No-Bid” Contracts. It is anticipated that the TTAC will need to contract with

experts to provide training to IRS agents working in Indian Country, as well as to

provide technical assistance in conducting its operations.

The TTAC by-laws shouldprovide that all ofits contractors be subject to a public

requestforproposals and competitive bidding based upon demonstrated

qualifications.
Thank you for the opportunity to provide comments to the Treasury Tribal Advisory

Committee.

Sincerely,

Jeremiah Julius

Chairman