U.S. DEPARTMENT OF THE TREASURY

TREASURY TRIBAL ADVISORY COMMITTEE 

PUBLIC MEETING MINUTES 

June 16, 2021

1:00 p.m. to 4:00 p.m.

(121 participants on call.)

The Treasury Tribal Advisory Committee (TTAC) conducted a public meeting on June 16, 2021. 

Due to COVID-19 safety measures, the meeting was held via teleconference.

In accordance with the provisions of Public Law 92-463, the meeting was open to the public

from 1:00 p.m. to 4:00 p.m.

The following TTAC members were present:

TTAC

Chairman W. Ron Allen 

Sharon Edenfield 

Lacey Horn, Chair 

Eugene Magnuson, Vice Chair 

Chief Lynn Malerba 

The following Treasury representatives were present:

Office of Tax Policy

Krishna Vallabhaneni, Tax Legislative Counsel and TTAC Designated Federal Officer (DFO) 

Kimberly Koch, Office of Tax Policy 

Nancy Montoya, Treasury Tribal Affairs Program Coordinator and Point of Contact for Tribal 

Consultation

CDFI Fund

Clint Hastings, Associate Program Manager, Native American Initiatives

Internal Revenue Service

Angela Gartland, Director, Government Entities 

Telly Meier, Program Manager, Indian Tribal Governments Office 

Carmen Zucker, Technical Program Manager, Office of Indian Tribal Governments 

Janine Cook, Deputy Associate Chief Counsel (Exempt Organizations and Employment Taxes), 

IRS, Office of Associate Chief Counsel (EEE) 

Pamela Kinard, Special Counsel, IRS, Associate Chief Counsel (EEE) 

Rachel Levy, Associate Chief Counsel, IRS, Office of Associate Chief Counsel (EEE) 

Andrew Megosh, Senior Tax Law Specialist, IRS, Office of Associate Chief Counsel (EEE) 

Dave Rifkin, Attorney, IRS, Office of Associate Chief Counsel (EEE) 
Karla Meola, Special Counsel, IRS, Office of Associate Chief Counsel 

Lisa Mojiri-Azad, Assistant to Branch Chief, IRS, Office of Associate Chief Counsel 

Dominic DiMattia, Associate Attorney, IRS, Office of Associate Chief Counsel 

CALL TO ORDER

DFO Vallabhaneni called the meeting to order at 1:00 p.m., welcomed the participants and 

turned it over to Chairperson Lacey Horn. 

ROLL CALL

Chairperson Horn welcomed the participants and provided a roll call of the TTAC Members. All 

TTAC members except Patricia King were present.

Chief Lynn Malerba provided a Tribal opening. Chairperson Horn turned the meeting over to 

DFO Vallabaneni, who introduced Commissioner of the Internal Revenue Service, Charles 

Retting.

Commissioner Rettig confirmed the IRS’ commitment to assisting Tribal governments and 

members and emphasized the importance of the TTAC in helping the IRS to perform its function 

in Indian Country. He discussed the work that the IRS has done to address the impacts of 

COVID-19, including over $800 billion in economic impact payments despite switching to a 

virtual environment. He noted the 20 years of experience that the IRS’ Indian Tribal 

Governments office has in working with Indian Country on tax matters and strengthening 

government-to-government relationships. He acknowledged that many Tribal businesses have 

been affected by the pandemic and that the IRS has worked on assisting these entities through the 

pandemic. The IRS is committed to ensuring that Indian Country has access to all COVID relief 

available to them, including tax relief for Tribes and individuals through the Advance Child Tax 

Credit. He thanked the TTAC for being a source of information on Tribal matters to the IRS and 

for their work.

DFO Vallabhaneni turned the meeting back to the Chair.

Chairperson Horn thanked the Commissioner and recognized the IRS’ commitment to resolving 

tax issues for Indian Country. The TTAC members were called upon to acknowledge the 

Commissioner. 

Chairman Allen noted the importance of the IRS unrestricting revenue so that Tribes could 

reduce their dependence on the Federal government. In addition, he discussed the importance of 

using BIA’s Section 17 definition of Tribally-owned corporations as the vehicle to establish 

Tribal businesses, both on and off reservation, as these are the main sources of income for 

Tribes. He also noted state taxation on these businesses. He encouraged the Commissioner to 

become more familiar with these issues and help better define Tribal tax jurisdiction on these 

issues.

Sharon Edenfield thanked the Commissioner for his encouraging remarks and for the time and 

effort of his staff on behalf of Tribes.
Vice-Chair Magnuson thanked the Commissioner for his remarks and efforts to reduce Native 

American child poverty.

Chief Malerba emphasized the critical role that economic development plays in providing 

services to Tribal communities. In addition to services, these revenues also help restore cultural 

assets for Tribes. She looked forward to the partnership with IRS and being creative in 

accomplishing mutual goals.

Chairman Horn thanked the Commissioner for his participation in the Public Meeting and he 

reiterated his commitment to the mutual work.

Treasury and IRS introduced staff participating in the meeting.

Chairperson Horn yielded the meeting to DFO Vallabhaneni. The meeting minutes from the 

March 17, 2021 meeting were approved. The minutes will be posted on the Treasury TTAC 

website.

TTAC Member Updates

No updates: Chairperson Horn, Vice-Chair Magnuson and Chief Malerba

Chairman Allen met with northwestern Tribes to provide an update on the activities of the 

TTAC, including the three subcommittees. He had also discussed tax parity issues regarding 

state taxation and GWE individual tax issues related to CARES and American Rescue Plan 

Tribal funds.

Sharon Edenfield discussed the impact of payments from Tribes administered under Tribal GWE 

programs on individual federal benefits. In some cases, assistance made under GWE result in 

Tribal members being disqualified from federal benefits as the assistance is treated as income. 

The Social Security Administration has been engaging with both Ms. Edenfield and Chairman 

Allen on resolving this issue for Social Security Insurance.

The agenda then moved into subcommittee updates. 

General Welfare Exclusion Subcommittee

Chairman Allen recognized the members of the Subcommittees who had worked on the report:

Chairman Allen noted that the report outlines the principles and specific concepts reviewed in 

the report. The report culminates in proposed regulations for consideration by the TTAC. The 

report was produced with extensive outreach and work sessions with Tribes over the past year 

with assistance from NCAI and NAFOA. Over 70 responses, including recommendations, were 

received as a result of outreach.

The report is organized around principles. A principle focus in the report is on the definition of 

“lavish and extravagant” as the term applies to GWE. The report emphasizes the importance of 

“safe harbor” provisions for Tribes in applying the GWE.

The report clarifies the difference between per capita and GWE payments, how GWE should be 

used in minor trusts, recommended substantiating GWE expenses related to IRS code 139E vs. 
2014-35 and are applied appropriately, recommended flexibility in “safe harbor” provisions so 

that each Tribe’s unique differences are considered, provided guidance on payments for cultural 

services, recommended that prospective enforcement moves forward instead of backwards, 

determined that “Lavish and extravagant” varies from Tribe to Tribe and that this definition 

should be determined at the Tribes’ individual discretion, recommended that accumulated and 

deferred GWE payments should be tax exempt and that GWE payments do not negatively impact 

Tribal citizens’ federal benefits. A section was added to address the tax treatment of disaster or 

emergency assistance payments, which are often administered under GWE programs. The report 

also addresses the treatment of grants to Native American-owned businesses and GWE 

jurisdiction over Tribal construction.

Councilperson Edelman emphasized the extensive outreach, including a pandemic-necessitated 

extension for Tribal input, that was conducted by the subcommittee and subsequently informed 

the report. 

The report was opened for discussion with the full TTAC.

Vice-Chair Magnuson recognized the work that was dedicated to producing the report on behalf 

of Tribal citizens.

Chief Malerba emphasized the importance that each Tribe define for themselves the meaning of 

“lavish and extravagant” when referring to GWE benefits.

Chairperson Horn acknowledged the hours devoted to producing the report.

Chief Allen made a motion to request that the TTAC accept the report and proposed regulations 

and submit the report and proposed regulations to Treasury for consideration and consultation.

Sharon Edenfield seconded.

Discussion on the report resumed with Chairman Horn including compensation for ceremonial 

and spiritual activities are well-addressed in the report and reflects comments from Tribes that 

these activities are not “services.”

Chairperson Horn clarified that any differences of opinion on the definition of “lavish and 

extravagant” should fall back onto the Tribe. Chairman Allen emphasized that the intent of the 

proposed regulation is that Tribe should have the defining authority, not the IRS field, on how 

cultural activities are compensated appropriately.

Chairperson Horn expressed pleasure that the report incorporated disaster relief as a GWE 

benefit. Chairman Allen emphasized that not only COVID-19 but other disasters continue to 

negatively impact Tribes and their members. She also noted the importance of existing or startup businesses in providing economic opportunity for Tribes and that grants should be eligible 

GWE benefits. She also noted the report’s recommendation to Treasury to not rely on United 

States of America vs. Miccosukee Indians of Florida in developing guidance on GWE because of 

it does not include several points of progression since the case was resolved. Chairperson Horn 

also noted that “safe harbor” and other provisions included in the report be maintained.
A vote was held on accepting the report and recommendations. Motion carried with five TTAC 

members voting unanimously in favor of the motion.

Treasury and IRS had no comments on the report.

Dual Taxation Subcommittee

Chief Malerba recognized the members of the Dual Taxation Subcommittee and report 

contributors. She noted that two Tribal consultations on the Dual Taxation report had been held. 

The due date for written comments io Treasury is June 28, 2021. Treasury will summarize 

comments and recommendations and meet with the TTAC to discuss next steps.

Chairman Allen asked about the role that NCAI may play in helping to reinforce the sovereignty 

of Tribal nations to set taxation. Chief Malerba also noted that BIA will be addressing taxation 

through the Indian Trade Act.

Chairperson Horn noted that she participated in the two consultations and was pleased with 

participation from Indian Country. 

Treasury and IRS had no comments on the committee work.

Tribal Pensions Subcommittee

Eugene Magnuson thanked the subcommittee members for their work. Vice-Chairman 

Magnuson noted that the work plan was adopted in September, 2020.

He noted the nine issues that needed to be addressed regarding Tribal pensions.

• Definition of governmental functions

• Definition of commercial activity

• Control group testing/single employer impact

• Employee-sharing, transfers and rehires

• Domestic relation orders

• Requirement for different asset-pools dilutes economies of scale for Tribal pensions

• Coordination of CPA audit standards

• State court-enforcement actions

• Perspective enforcement 

He noted that a survey sent to Tribal governments to gather information on Tribal pension plans 

was suspended as several Tribes expressed confusion on the survey, pending the reworking of 

questions to support the information gathering from Tribes.

No further discussion from either TTAC, Treasury or IRS occurred.

Public Comment

Chairman Horn called Tina Abrams, Councilor with the Seneca Nation to provide public 

comment.
Tina Abrams, Councilor, Seneca Nation, addressed the TTAC on several issues. She encouraged 

the TTAC to engage with Tribes in gathering Tribal input and in preparing subcommittee 

reports. She reiterated that Tribal members are being required to report GWE benefits to federal 

agencies and that these benefits are being counted as sources of income, thus disqualifying the 

Tribal members from receiving these federal benefits. These include Social Security Disability 

Insurance, HUD housing assistance and SNAP (USDA) benefits. The loss of these benefits 

especially impact elders in Tribal communities. These benefits should not disqualify members 

from assistance or be treated as taxable income. She requested that the Social Security 

Administration engage with the TTAC in a meeting to discuss these issues. Benefits provided to 

Tribal members should not be taxed and IRS has not yet issued guidance that GWE benefits are 

not taxable. She asked if Treasury would be issued guidance on the tax status of COVID-19 

relief funds used to meet the needs of Tribal members. She also requested advance notice to 

Tribes for any meetings being held by TTAC subcommittees so that Tribal nations can provide 

input.

Chief Benjamin Barnes, Chief of the Shawnee Tribe asked if the TTAC has approached Treasury 

about whether CARES and ARP funding can be exempted from affecting the direct costs 

associated with Tribal administration. Tribes do not have enough funding to pay for basic 

indirect administration functions.

Chairman Allen responded that other Tribes are concerned about this issue as well. He considers 

this a high-priority issue on how Tribes’ indirect rates will be affected by this funding. He also 

recognized the Seneca Nation’s concerns on GWE and pointed out that solutions have been 

included in the GWE report.

Treasury Updates

Clint Hastings, CDFI Fund, announced that $1.2 billion in awards were made to 863 Community 

Development Financial Institutions (CDFIs) to support their work to respond to the economic 

challenges faced by underserved communities impacted by COVID-19. The CDFI Fund was 

required to provide a minimum of $25 million to CDFIs serving Native communities. The Fund 

far exceeded this goal by providing 58 awards totaling over $54.6 million to Native CDFIs. The 

funds are expected to be deployed over the next few weeks.

DFO Vallabhaneni noted that on April 1, 2021 a Notice in the Federal Register was published 

calling for nominations for the Secretary’s three appointments to the TTAC whose terms were 

expiring in June 2021. The nominations period closed on June 1, 2021 and Treasury is 

considering the submissions. DFO also stated that he contacted the Chairman Neal of the House 

Ways and Means Committee to advise him of the vacancy created by Patricia King’s resignation 

as a member of the TTAC. As the Treasury is not involved in the Ways and Means Committee 

appointment to the TTAC, he encouraged interested parties to reach out to Chairman Neal’s 

office directly.

DFO Vallabhaneni also announced that, in response to comments received in part by Tribal 

governments on the tax treatment of COVID-19 individual relief payments, Treasury posted 

draft FAQs on the IRS Indian Tribal Government’s website for public comment. The FAQ also 
included a notice for Tribal consultation on the draft FAQs to be held June 25, 2021. A 

registration link was included on the website.

Nancy Montoya discussed the upcoming consultations on the draft FAQ and income treatment of 

COVID-19 payments by the Social Security Administration on June 25, 2021. She also 

announced the extension of submission deadlines related to the ARP State and Local Fiscal 

Recovery Funds and Homeownership Assistance Fund. She also noted that the Interim Final 

Rule on the ARP State and Local Fiscal Recovery Fund is available for review and public 

comments by July 16, 2021. Comments should be submitted via regulations.gov. Treasury is 

conducting extensive outreach with Tribes and Tribal stakeholders on the State Small Business 

Credit Initiative (SSBCI). Requests for outreach and information can be sent to the 

tribal.consult@treasury.gov. 

Telly Meier provided an update on Tribal tax activities from the Indian Tribal Governments 

(ITG) office. He mentioned the 1099 training, the new publication on “Income Tax Guide for 

Native Americans and Sole Proprietors” released in February. He announced a nationwide 

training in August on Employment Tax that will be combined with individual assistance. In 

October, the IRS will be conducting a wagering tax training for sports betting enterprises. The 

Indian Tribal Goverment webpage is undergoing an update to make it more user-friendly. He 

also announced that a position for a tax law specialist had recently closed. He thanked Tribal 

members and organizations for helping with awareness and recruiting efforts for Native 

applicants.

Janine Cook provided an update on COVID-19 credits provided to employers, including Tribal 

governments. The three credits are: the Paid Sick and Family Leave, Employee Retention Credit 

and a new credit, the COBRA subsidy credit. Ms. Cook mentioned that the Paid Sick and Family 

Leave was extended to September 30, 2021 and expanded to include leave to get a vaccine or 

recover from receiving a vaccine. The Employee Retention Credits was extended to December 

31, 2021. IRS released expanded guidance on these credits and is working on additional 

guidance. Information is available on IRS.gov COVID payments page. The COBRA subsidy 

credit is available to eligible Tribal government and tribal entity employers. For eligible 

individuals, the credit covers 100% of the COBRA premiums for COBRA continuation coverage 

if the employee lost coverage due to a reduction in hours or involuntary termination of 

employment. The credit is available for periods of coverage beginning from April 1 through 

September 30, 2021.

Chairperson Horn announced that the next Public Meeting is tentatively scheduled for December 

15, 2021. The date and format will be finalized later in the year. DFO Vallabhaneni noted that 

the Federal Register notice for the Public Meeting would be published after October 1, 2021 due 

to fiscal year constrictions.

Chairman Allen provided a Tribal closing. 

DFO Vallabhaneni thanked everyone for attending and closed the meeting at 2:57 p.m.