674 provides guidance on IRC Section 7873 (which was added to the Code by Section 3041 of the Technical and Miscellaneous Revenue Act of 1988), which exempts from federal income and employment taxes certain income derived by Indians from the exercise of their recognized tribal fishing rights.Įarl v. These reports include information about the allocation rules contemplated by Congress. 100-647 Committee Reports provide additional insight into the enacting legislation behind IRC Section 7873. IRC Section 7873(b)(3) defines “qualified Indian entity.” Resources (Court Cases, Chief Counsel Advice, Revenue Rulings, Internal Resources) IRC Section 7873(b)(2) defines “recognized fishing rights.” IRC Section 7873(b)(1) defines “fishing rights-related activity.” IRC Section 7873 provides an exemption from the imposition of tax for income derived by a tribal member directly or through a qualified Indian entity, or a qualified Indian entity, from a fishing rights-related activity of the tribe.
Certain income related to treaty fishing rights-related activity is exempt from income, self-employment and employment taxes.
