n-11-94.pdf

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Part III Administrative, Procedural and Miscellaneous

Application of General Welfare Exclusion to Benefits Provided under Indian Tribal
Government Programs

Notice 2011-94

PURPOSE

This notice invites comments concerning the application of the general welfare
exclusion to Indian tribal government programs that provide benefits to tribal members.
BACKGROUND
Section 61(a) of the Internal Revenue Code provides that, except as otherwise
provided by law, gross income means all income from whatever source derived. The
Internal Revenue Service has consistently held, however, under a limited general
welfare exclusion (the exclusion), that payments under governmental social benefit
programs for the promotion of the general welfare are not includible in a recipient’s
gross income. Rev. Rul. 2009-19, 2009-28 I.R.B. 111; Rev. Rul. 98-19, 1998-1 C.B.
840; Rev. Rul. 74-205, 1974-1 C.B. 20. To qualify under the exclusion, the payments
must (1) be made to an individual under a governmental program, (2) be for the
promotion of the general welfare (that is, based on need), and (3) not represent
compensation for services. Rev. Rul. 2003-12, 2003-1 C.B. 283; Rev. Rul. 2005-46,
2005-2 C.B. 120.
E.O. 13175 (November 6, 2000) requires Federal agencies to consult with tribal
officials before formulating and implementing policies that have tribal implications.
REQUEST FOR COMMENTS

The Service has received inquiries from Indian tribal governments about the

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application of the exclusion to tribal government programs that provide benefits to tribal
members. These programs may include, but are not limited to:
• Housing (for example, programs providing housing on and off the reservation,
with income limits different from those of the United States Department of
Housing and Urban Development);
• Cultural (for example, programs involving tours of sites that are historically
significant to a tribe; language preservation programs; community recreational
programs; cultural and social events);
• Education (for example, programs providing tutors or supplies to primary and
secondary school students; job retraining programs for adults);
• Elder programs (for example, programs providing heating assistance or meals).
In response to these inquiries, and to provide clarity and certainty to Indian tribal
governments and consistency in applying the exclusion, the Service and the Treasury
Department are considering issuing guidance. Pursuant to E.O. 13175, comments are
invited describing actual or proposed Indian tribal government programs that provide
benefits to members and the application of the exclusion to these programs and
benefits.
Comments may be submitted in writing on or before February 13, 2012.
Comments should be submitted to Internal Revenue Service, CC:PA:LPD:PR (Notice
2011-94), Room 5203, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044, or
electronically to Notice.Comments@irscounsel.treas.gov
. Please include “Notice 2011-
94” in the subject line of any electronic communications. Alternatively, comments may
be hand delivered between the hours of 8:00 a.m. and 4:00 p.m. Monday to Friday to
CC:PA:LPD:PR (Notice 2011-94), Courier’s Desk, Internal Revenue Service, 1111

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Constitution Avenue NW, Washington, D.C. All comments will be available for public
inspection and copying.
DRAFTING INFORMATION
The principal author of this notice is Sheldon Iskow of the Office of Associate
Chief Counsel (Income Tax & Accounting). For further information, please contact Mr.
Iskow at (202) 622-4920 (not a toll-free call).