Michael W. Allen - Page 8

          council members from the definition of “wages” for the purposes             
          of FICA, FUTA, and income tax withholding.  Petitioner                      
          misconstrues the revenue ruling and its relevance.  The revenue             
          ruling does not exempt petitioner’s income from tax.  See Allen             
          v. Commissioner, T.C. Memo. 2005-118; Doxtator v. Commissioner,             
          T.C. Memo. 2005-113.                                                        
               A tribal official, whether elected or appointed, is subject            
          to income tax on the compensation received for rendering services           
          to the tribe unless a treaty or statute specifically provides an            
          exemption.  See Hoptowit v. Commissioner, 78 T.C. 137, 145-148              
          (1982), affd. 709 F.2d 564 (9th Cir. 1983); Jourdain v.                     
          Commissioner, 71 T.C. 980, 986-987 (1979), affd. 617 F.2d 507               
          (8th Cir. 1980).  Petitioner has not shown that either a treaty             
          or a statute specifically exempts any of his compensation.                  
          Accordingly, we sustain respondent’s determination that the                 
          compensation petitioner received is subject to tax.                         
          III. Petitioner’s Unexplained 2001 Adjustment                               
               Petitioner claimed an unexplained adjustment to gross income           
          of $69,916 on his return for 2001.  Petitioner did not provide              
          any evidence concerning this adjustment.  This amount does not              
          correspond to any items of income he reported on his return for             
          2001, and it is unclear from the record how petitioner arrived at           
          this amount.  Presumably petitioner adjusted his gross income to            
          subtract the income he believed was not taxable.  As explained              
          previously, payments that petitioner received from the tribe and            
          other entities are taxable because no explicit statutory                    

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  Next

Last modified: May 25, 2011