Has the Internal Revenue Service (IRS) ever approved a Tribal deferred per capita plan?
Yes, the IRS has approved a deferred per capita plan. In Private Letter Ruling 199908006 (PLR), the IRS approved a plan that allows Tribal members to defer a portion of their per capita distributions. Before the PLR was issued, the IRS regularly permitted deferrals of earned income; however, we are aware of no other ruling that has addressed the deferral of unearned income. The IRS has not approved any deferred per capita plans since the PLR and has temporarily taken a “no ruling” stance. The “no ruling” stance was adopted in connection with the solicitation of comments on similar deferred income arising in connection with a Tribe’s administration of minors’ trusts set up to hold gaming revenues for minors. While the comment deadline has long since expired, the “no-rule” policy has not been lifted. On January 7, 2008, the IRS released their 2008 “no-rule” list, which included tribal-sponsored deferred per capita plans. There is no indication that the IRS is inclined to issue guidance t
