Tribal Payments and IIM Accounts 430-05-50-20-10-10
(Revised 10/01/16 ML3479)
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Tribal Payments are generally made directly to tribal members or put into an Individual Indian Monies (IIM) Account.
Countable Unearned Income
- Tribal Distributions from tribal gaming or tribal enterprises distributed to enrolled tribal members (residing on or off a reservation).
Payments made to enrolled tribal members from the proceeds of gaming or gambling businesses are not per capita payments; therefore the income must be counted.
These payments are prorated over the period of time intended to cover with the exception of those noted. These payments include but are not limited to:
- Spirit Lake Social Impact Payments
- Sisseton-Wahpeton Oyate of the Lake Traverse Reservation Quarterly Casino Cash
- Three Affiliated Tribal Elderly Payments
- Three Affiliated Tribe's People's Fund Distributions
- General distributions from tribal revenue.
At application, review and when adding a new member to a case, payments received from the Three Affiliated Tribes People's Fund or general distribution from tribal revenue in the most recent FULL 12 month period are annualized and counted.
- Amounts in excess of $2,000 per year per person of monies derived from leases or other uses of individually owned trust or restricted lands are countable unearned income.
25 USC 1408
Excluded Income
- Indian per capita payments distributed from judgment awards and trust funds.
25 USC 1407 - Amounts up to $2,000 per year per person of monies derived from leases or other uses of individually owned trust or restricted lands are excluded.
25 USC 1408 - Alaska Native Claims Settlement Act - payments received from a native corporation.
43 USC 1626 (b) (c) - Sisseton-Wahpeton Oyate of the Lake Traverse Reservation Food Distribution Program.
- Monies derived from certain sub-marginal land held in trust for certain Indian tribes. The tribes that may benefit are:
- Bad River Band of the Lake Superior Tribe of Chippewa Indians of Wisconsin
- Blackfeet Tribe
- Cherokee Nation of Oklahoma
- Cheyenne River Sioux Tribe
- Crow Creek Sioux Tribe
- Lower Brule Sioux Tribe
- Devils Lake Sioux Tribe
- Fort Belknap Indian Community
- Assiniboine and Sioux Tribes
- Lac Courte Oreilles Band of Lake Superior Chippewa Indians
- Keweenaw Bay Indian Community
- Minnesota Chippewa Tribe
- Navajo Tribe
- Oglala Sioux Tribe
- Rosebud Sioux Tribe
- Shoshone-Bannock Tribes
- Standing Rock Sioux Tribe
25 USC 459e
- Spirit Lake Nation incentives and payments for grades issued to individuals attending college.
- Tribal High School Graduate/GED Payments - Payments from a federally recognized tribe to tribal members who graduate from high school or receive a GED are considered non-recurring lump sum.
Determining Countable Income in Individual Indian Money (IIM) Accounts
Individual Indian Money (IIM) accounts are established for individual trust beneficiaries. These accounts can be created for a number of different reasons. The individual may:
- Be the original allottee of a parcel of land.
- Is an heir to the original allottee of a parcel of Indian trust land and have inherited the land through probate.
- Have received trust asset through a gift deed.
- Have received per capita trust payments from the tribe, a tribal settlement, or a judgment award.
Most IIM accounts receive income from the use or sale of a trust asset, such as agricultural or grazing leases, coal production, timber harvesting, and oil and gas royalties. Funds can also come from a per capita payment, income earned on deposited funds, inheritance, VA, SSA or SSI. Some accounts receive proceeds from an estate account following a probate.
Federal law requires that up to $2,000 per year of deposits derived from leases, trusts and restricted lands must be excluded.
At application, review or when adding a new household member, verification of the IIM account must be obtained for the most recent FULL 12 month period prior to the month of application.
IIM accounts can be verified in the following ways:
- Client statement is acceptable when the account balance is less than $2000 and the income is derived solely from leases, trusts and restricted lands.
- When client statement is questionable, the balance is over $2,000, or the account includes income from sources other than leases, trusts and restricted lands verification is required:
- Request for verification of IIM account information using form SFN 413, Individual Indian Monies Account. This form will need to be notarized per requirements of the United States Department of the Interior, Office of the Special Trustee for American Indians, Office of Trust Funds Management. These releases are valid for one (1) year and must be renewed annually.
- Individuals with IIM accounts receive statements from the Office of Trust Funds Management on a quarterly basis. A copy of this form may be requested from the recipient. However, the recipient will not receive the statement if the Office of Trust Funds Management does not have a current address.
- The individual may obtain a statement of their IIM account directly from the Office of Trust Funds Management through the Bureau of Indian Affairs (BIA) by requesting the information in person or by making a telephone request. In both cases, the individual will need to know their account number and provide at least two forms of identification.
Once verification is received the amount of countable income is calculated as follows:
- Subtract any deposits that are not derived from leases, trusts or restricted lands. These sources of income would be considered separately based on policy.
- The remaining deposits would be totaled for the twelve-month period.
- Deduct the $2000 disregard. (The result is the annualized countable income)
- Divide the annualized countable income by 12 to determine the monthly countable unearned income.
New Source of Income
When a new source of income is identified during the most recent FULL 12 month period the amount of countable income is calculated as follows:
- Subtract any deposits that are not derived from leases, trusts or restricted lands. These sources of income would be considered separately based on policy.
- Subtract the new source income from each month the income was received.
- The remaining deposits would be totaled for the twelve-month period.
- Total the new source income and divide by the number of months it was received. Multiple by 12 to determine a new annual amount of the new source income.
- Add the annual amount of the new source income to the total of the remaining deposits.
- Deduct the $2000 disregard. (annualized countable income)
- Divide the annualized countable income by 12 to determine the monthly countable unearned income.
25 USC 1408