ยง 402 Internal Revenue Service Safe Harbor Programs
Programs that meet the following general criteria for safe harbor treatment, and provide qualifying safe harbor benefits shall be treated as non-taxable Assistance under the General Welfare Exclusion without Applicant having to demonstrate individual need:
A. General Criteria for Safe Harbor Treatment, Each Safe Harbor Program shall satisfy the following criteria:
1. The benefit is provided under a specific Approved Program of the San Juan Southern Paiute Tribe;
2. The Program has written requirements specifying how Tribal Members may qualify for the benefit;
3. The benefit is available to any Tribal Member who satisfies the Program eligibility criteria subject to budgetary restraints;
4. The distribution of benefits from the Program does not discriminate in favor of the Tribal Council of the San Juan Southern Paiute Tribe;
5. The benefit is not compensation for services (past, present or future);
6. The benefit is not Lavish or Extravagant under the facts and circumstance, as determined by the Tribal Council.
B. The Approved Programs found in Chapters 2, 3, 4, 5 and 6 of this Title may provide benefits as a Safe Harbor Program. An Approved Program benefit may qualify for exclusion from gross income as a Safe Harbor Program even though the benefit is not expressly described in the parenthetical language, provided that it meets all other requirements of this Title and IRS Revenue Procedure 2014-35 (as it may be amended).
C. Other assistance or incentives may be provided by the Tribe to assist in the payment of other items or provide services that fit within the intent and purpose of the safe harbor but may not be identified explicitly in this Title, provided that (1) the expense is consistent with the purpose and intent of one or more of the safe harbor categories, and (2) all other criteria of the safe harbor and/or Code Section 139E are met.
[Legislative History: Enacted by Resolution No. 2018-72, 10/5/2018; Amended by Resolution No. 2019-03, 1/18/2019]