The IRS issued a release reminding Alaska native corporations and Alaska native settlement trusts of certain benefits in the new tax law (Pub. L. No. 115-97).
The new law also requires that certain contributions made by native corporations to settlement trusts in 2017 be reported to the settlement trusts by January 31, 2018.
As noted in the IRS release—IR-2018-16—the new law allows a native corporation to assign certain payments to a settlement trust without treating the payments as income for federal tax purposes. If a native corporation assigns payments to a settlement trust, a deduction for these payments is not allowed. However, native corporations may choose to deduct contributions made to a settlement trust. The deduction is limited to the amount of the native corporation’s taxable income for that year. Any unused deduction may be carried forward 15 additional years.
© 2018 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.