Miccosukee tribe, IRS wrangle over taxation of casino revenue

Blackjack table stack of chips
Blackjack table stack of chips

The relationship between the U.S. federal government and Native Americans has never been a particularly easy one. It is, however, about to get a lot more complicated.

The Miccosukee tribe has advised the IRS that members of the tribe do not owe any taxes received from the tribe's multimillion-dollar gaming and casino operations in Florida. The IRS, as you can imagine, takes a very different position.

Under existing law, tribes with gaming facilities do not pay federal income tax on revenue collected at casinos and other halls. This is in deference to the idea of tribal sovereignty and is key to the Indian Gaming Regulatory Act (IGRA), signed into law by President Reagan in 1988. However, tribes are required to report all distributions to members and to advise members that they may owe federal income taxes on those distributions. The idea was to respect the idea of tribal sovereignty to create gaming halls and casinos which might otherwise not be allowed under state law but give the federal government the power to regulate gaming.

Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.
The 10 Most Overlooked Tax Deductions
Don't overpay taxes by overlooking these tax deductions. See the 10 most common deductions taxpayers miss on their tax returns so you can keep more money in your pocket.
Read MoreBrought to you byTurboTax.com
States with the Lowest Taxes and the Highest Taxes
Where you live can help or hinder your ability to make ends meet. A myriad of taxes—property, license, state and local sales, property, inheritance, estate and excise taxes on gasoline—eat away at your disposable income. Weighing the tax landscape against your financial picture lets you stretch your dollars. Here's a roundup of the highest and lowest taxes by state.
Read MoreBrought to you byTurboTax.com
What to Do After You've Filed an Income Tax Extension
No matter how or when you file your taxes, here's a guide to next steps.
Read MoreBrought to you byTurboTax.com
Child Tax Credit Calculator and Top 7 Requirements
The Child Tax Credit can significantly reduce your tax bill if you meet all seven requirements: 1. age, 2. relationship, 3. support, 4. dependent status, 5. citizenship, 6. length of residency and 7. family income. You and/or your child must pass all seven to claim this tax credit.
Read MoreBrought to you byTurboTax.com