Welfare exclusion as applied to Indian tribal government programs

Welfare exclusion, Indian tribal government programs

The IRS today released an advance version of Notice 2015-34 concerning the welfare exclusion as applied to Indian tribal government programs.

Related content

Under the general welfare exclusion, payments or benefits under certain governmental programs for the promotion of the general welfare are not includible in a recipient’s gross income.


In June 2014, the IRS issued Rev. Proc. 2014-35 to provide safe harbors for applying the general welfare exclusion to Indian tribal government programs.

The safe harbors concerned benefits provided under certain housing, educational, elder and disabled, cultural and religious, and other qualifying assistance programs of Indian tribal governments.

Accordingly, the value of benefits under these programs received by tribal members and certain non-members will not be included in income, and certain benefits will not be treated as compensation for services.

Notice 2015-34

With today’s release of Notice 2015-34 [PDF 19 KB], taxpayers may continue to rely on Rev. Proc. 2014-35.

The IRS also requested comments on interpreting certain provisions of the Tribal General Welfare Exclusion Act of 2014.

© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Request for proposal



KPMG's new digital platform

KPMG International has created a state of the art digital platform that enhances your experience, optimized to discover new and related content.