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On March 29, the Internal Revenue Service issued final frequently asked questions (FAQs) for payments by Indian tribal governments and Alaska native corporations to individuals under COVID- relief legislation.

These reflect updates to the draft FAQs, released in May 2021, based on input from tribal government and Alaska Native Corporations leaders.

For purposes of these FAQs, references to tribal members include other eligible recipients of COVID relief payments, such as a tribal member’s dependents. In addition, the answers in FAQs 1-14 relating to the tax treatment and information reporting of payments made from tribes to tribal members should be considered to apply equally to payments made from ANCs to their shareholders and other eligible recipients, such as an ANC shareholder’s dependents.

The Coronavirus Aid, Relief, and Economic Security Act (CARES Act), enacted on March 27, 2020, provided a number of emergency relief programs that benefitted Indian tribal governments (tribes) and tribal members. The Consolidated Appropriations Act, 2021 (CAA), enacted on Dec. 27, 2020, extended certain COVID-related tax provisions, and provides for appropriations for COVID-19 emergency response and relief for the fiscal year ending Sept. 30, 2021, including additional funds for tribes. The American Rescue Plan Act of 2021 (ARP), enacted on March 11, 2021, also extended previous programs, and added new relief provisions that benefit tribes and tribal members. These programs allow tribes to provide emergency relief payments to tribal members and their families for necessary expenses resulting from the COVID-19 pandemic.

COVID assistance taxes FAQs

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