Free Site Registration


More Debits & Credits Posts

Indian Tribal Land Auctioned by IRS for Tax Debt

Print
Email
Reprints
By Michael Cohn
December 7, 2009

The IRS has sold off a 7,100-acre parcel of land on Native American tribal land to pay off over $3 million in delinquent employment taxes, even though the federal government had earlier said the tribe did not owe taxes on the ranch land.

The Crow Creek Sioux tribe has filed a lawsuit in South Dakota in an effort to block the sale of the land, according to the Associated Press. A federal judge, Roberto Lange, turned down their request to block the sale, and it has been auctioned off for $2.6 million, $2 million less than its appraisal value. But the judge has scheduled a trial to listen to the tribe’s arguments.

The tribe has been on the land since at least an 1868 treaty. The land was held by the federal government in trust for the tribe. But the reservation was later broken up, privatized under the Dawes Act, and sold to non-Native Americans. The tribe eventually bought back the land in 1998 through a corporation, Crow Creek Tribal Farms Inc., but it was no longer under federal trust and apparently no longer tax exempt.

Advertisement

The tribe was planning to use the land to build wind farms and generate some much needed revenue, but the auction has thrown those plans to the wind. The tribe may be able to repurchase the land during a 180-day redemption period, however, and a trial is scheduled for late March. The tribe has little money of its own to pay for the land now, though, and lives in one of the poorest sections of the country. The federal government is still holding money in trust for the tribe that could be used to pay for the land, if the government allowed the money to be used.

This seems to be a case where the government should be making every effort to allow the tribe to continue to use its ancestral land, especially when it could be used for the wind energy that President Obama has campaigned to promote, not to mention his promises to help Native Americans overcome poverty. Buffalo County, S.D., has a 20 percent unemployment rate and the wind farm could not only help stimulate the economy there, but also provide jobs in a part of the country that sorely lacks them.

2 Comments

To NDDAD,

All IRS actions have causes and effects (consequences). Oft times, a bit of thought provides for a better solution to a problem.

In this case an under evaluation of the land, low auction price, plays favorite with IRS acquittance, however unintended. And the Native American, at least so far, for the land is infinitely better than no plan. An the profits there from could be used to pay of the IRS debt and help cure the unemployment rate.

This may be an opinion, but so are most IRS decisions in handling back taxes due. Sometime businesses are shut, other time they are given time to pay. And unfortunately, oft times, these decisions are based on opinions and/or influence.

Posted by: Tedego | December 8, 2009 12:07 PM

Report this Comment


Just an observation. I thought this was newsletter for reporting accounting and tax news. However, the last paragraph of this Indian land article is clearly editorial opinion. Are the other articles written in this newsletter with a "slant" also?

Posted by: NDDAD | December 8, 2009 9:19 AM

Report this Comment

Add Your Comments...

Already Registered?

If you have already registered to Debits & Credits, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.


Advertisement
Advertisement

What's New at Grant Thornton

May 14, 2012

CEO Stephen Chipman talks about his firm's new brand focus on growth, and its recent M&A activity.

Advertisement

SLIDE SHOW

Top 10 Payroll Mistakes Companies Make

May 14, 2012

Keeping your clients from running afoul of IRS rules around payroll taxes will help them avoid stiff penalties.

10 Years of the Top 100 Firms

May 6, 2012

Tracking trends at the biggest firms in the U.S.

Best Accounting Firm Taglines

April 27, 2012

Our favorite slogans from around the profession.

Favorite Busy Season Activities

April 10, 2012

LinkedIn Accounting members share the best methods to bust stress and boost morale.

The Best Places to Be an Accountant 2012

March 27, 2012

From our 2012 Regional Leaders list, we rank the best parts of the country to operate an accounting firm.

More Wacky Tax Deductions

March 26, 2012

LinkedIn members point out some weird tax deductions their clients have suggested.

7 Tax-Free Benefits for Employees

April 15, 2012

Employee rewards Uncle Sam can't touch.

Advertisement
Advertisement
Advertisement