In this context, welfare refers to “Indian general welfare benefit,” which is any payment or service delivered to a Native American through a tribal government program. The tax benefit of this bill applies to any Indian welfare program, as long as benefits are available to any tribal member, are dispersed without discrimination or favoritism, and don’t go toward lavish expenses.
If enacted, this bill would order the Secretary of the Treasury to create a Tribal Advisory Committee to collaborate with the Treasury on tax matters regarding Native Americans. It would also create training and education for IRS field agents on federal Indian law and how to implement elements of this bill. Lastly, it would cancel audits of Indian tribal governments and individual members and dismiss any tax penalties incurred by individuals who have already excluded welfare benefits from their gross income.