- 5 -
petitioner from both the Prudential and Guardian accounts are
premature.
OPINION
Positions of the Parties
Petitioner argues that he should not have to include any of
the Prudential distribution in income and that he made a mistake
by including the Guardian distributions in income because
distributions from both accounts are exempt from taxation as
income derived by an Indian from fishing-rights-related activity
under section 7873.
Section 7873 provides in relevant part:
(a) In General.--
(1) Income and self-employment taxes.--No tax
shall be imposed by subtitle A on income derived--
(A) by a member of an Indian tribe
directly or through a qualified Indian
entity, or
(B) by a qualified Indian entity, from a
fishing rights-related activity of such
tribe.
(2) Employment taxes.--No tax shall be imposed by
subtitle C on remuneration paid for services performed
in a fishing rights-related activity of an Indian tribe
by a member of such tribe for another member of such
tribe or for a qualified Indian entity.
(b) Definitions.--For purposes of this section--
(1) Fishing rights-related activity.--The term
"fishing rights-related activity" means, with respect
to an Indian tribe, any activity directly related to
harvesting, processing, or transporting fish harvested
in the exercise of a recognized fishing right of such
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Next
Last modified: May 25, 2011