Dear USET/USET SPF Family,
The Internal Revenue Service (IRS) has finalized and issued a Frequently Asked Questions (FAQ) document for COVID-19 relief payments by Tribal Governments made to individual Tribal citizens. These include COVID-19 relief payments authorized by the Coronavirus Aid, Relief, and Economic Security Act of 2020 (P.L. 116-136), the Consolidated Appropriations Act of 2021 (P.L. 116-260), and the American Rescue Plan Act of 2021 (P.L. 117-2). This FAQ document provides general information on the tax treatment and required reporting for COVID-19 relief payments by Tribal governments to individual Tribal citizens and their dependents.
The Department of Treasury and the Social Security Administration hosted a Tribal consultation on June 25, 2021 to receive input from Tribal Nations on the treatment of COVID-19 relief payments and the federal income tax consequences to Tribal citizens and dependents benefiting from these payments. The updated FAQ document reflects the input received during this consultation as well as input received on the Draft FAQ document released in May 2021.
For more information, please contact Brian Howard, USET SPF Senior Policy Analyst, at email@example.com.