The Tax Court today looked at three cases where Native Americans claimed that they did not owe income tax because they’re Native Americans. Section 1 of the Tax Code states that all income is taxable. As the Court noted,
“Native Americans are subject to the same Federal income tax laws as are other U.S. citizens unless there is an exemption explicitly created by treaty or statute. Squire v. Capoeman, 351 U.S. 1, 6 (1956); Estate of Poletti v. Commissioner, 99 T.C. 554, 557-558 (1992), affd. 34 F.3d 742 (9th Cir. 1994); see Allen v. Commissioner, T.C. Memo. 2006-11; see also Rev. Rul. 2006-20, 2006-15 I.R.B. 746.” [Gunton v. Commissioner, T.C. Memo 2006-122]
In all three cases the petitioners could not cite treaties or laws that exempted them from income tax. So they all struck out, and owe the tax.
Cases: Gunton v. Commissioner, T.C. Memo 2006-122
Metallic v. Commissioner, T.C. Memo 2006-123
George v. Commissioner, T.C. Memo 2006-121