26 U.S.C. § 139G: Assignments to Alaska Native…

Summary

Payments that would otherwise go to an Alaska Native Corporation under the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), including payments under section 7(j) (43 U.S.C. 1606(j)), do not count as that corporation’s gross income if the payments are put in writing and assigned to a Settlement Trust and the corporation did not receive them before the assignment. When a Settlement Trust gets those assigned payments, the trust must include them in its gross income when received, and the payments keep the same tax character they would have had for the Native Corporation. The assignment must describe the amount (by percentage or fixed dollar), state how long it lasts (perpetual or for a time), and say if it can be revoked. The Native Corporation may not deduct those amounts (see section 247). “Native Corporation” and “Settlement Trust” mean the same as in section 646(h).

Title 26, §139G

Internal Revenue Code, Source: USLM XML via OLRC

(a)In general

In the case of a Native Corporation, gross income shall not include the value of any payments that would otherwise be made, or treated as being made, to such Native Corporation pursuant to, or as required by, any provision of the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), including any payment that would otherwise be made to a Village Corporation pursuant to section 7(j) of the Alaska Native Claims Settlement Act (43 U.S.C. 1606(j)), provided that any such payments—

(1)are assigned in writing to a Settlement Trust, and

(2)were not received by such Native Corporation prior to the assignment described in paragraph (1).

(b)Inclusion in gross income

In the case of a Settlement Trust which has been assigned payments described in subsection (a), gross income shall include such payments when received by such Settlement Trust pursuant to the assignment and shall have the same character as if such payments were received by the Native Corporation.

(c)Amount and scope of assignment

The amount and scope of any assignment under subsection (a) shall be described with reasonable particularity and may either be in a percentage of one or more such payments or in a fixed dollar amount.

(d)Duration of assignment; revocability

Any assignment under subsection (a) shall specify—

(1)a duration either in perpetuity or for a period of time, and

(2)whether such assignment is revocable.

(e)Prohibition on deduction

Notwithstanding section 247, no deduction shall be allowed to a Native Corporation for purposes of any amounts described in subsection (a).

(f)Definitions

For purposes of this section, the terms “Native Corporation” and “Settlement Trust” have the same meaning given such terms under section 646(h).

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Alaska Native Claims Settlement Act, referred to in subsec. (a), is Pub. L. 92–203, Dec. 18, 1971, 85 Stat. 688, which is classified generally to chapter 33 (§ 1601 et seq.) of Title 43, Public Lands. For complete classification of this Act to the Code, see

Short Title

note set out under section 1601 of Title 43 and Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 115–97, title I, § 13821(a)(3), Dec. 22, 2017, 131 Stat. 2178, provided that: “The

Amendments

made by this subsection [enacting this section] shall apply to taxable years beginning after December 31, 2016.”

§139G Assignments to Alaska Native Settlement Trusts