A bill to amend the Internal Revenue Code of 1986 to treat certain tribal benefits as earned income for purposes of the kiddie tax.

II 116TH CONGRESS 1ST SESSION S. 2079 To amend the Internal Revenue Code of 1986 to treat certain tribal benefits as earned income for purposes of the kiddie tax. IN THE SENATE OF THE UNITED STATES JULY 10, 2019 Ms. MURKOWSKI introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to treat cer- tain tribal benefits as earned income for purposes of the kiddie tax. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. CERTAIN PAYMENTS MADE BY INDIAN TRIBAL 3 GOVERNMENTS TREATED AS EARNED IN- 4 COME FOR KIDDIE TAX. 5 (a) IN GENERAL.—Section 1(g)(4)(C) of the Internal 6 Revenue Code of 1986 is amended to read as follows: 7 ‘‘(C) TREATMENT OF CERTAIN AMOUNTS 8 AS EARNED INCOME.—For purposes of this sub- 9 section, each of the following amounts shall be 10 VerDate Sep 11 2014 04:57 Jul 12, 2019 Jkt 034408 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2079.IS S2079 pbinns on DSK79D2C42PROD with BILLS 2 •S 2079 IS treated as earned income of the child referred 1 to in paragraph (1) to the extent included in 2 the gross income of such child: 3 ‘‘(i) DISTRIBUTIONS FROM QUALIFIED 4 DISABILITY TRUSTS.—Any amount in- 5 cluded in the gross income of such child 6 under section 652 or 662 by reason of 7 being a beneficiary of a qualified disability 8 trust (as defined in section 9 642(b)(2)(C)(ii)). 10 ‘‘(ii) CERTAIN INDIAN TRIBAL PAY- 11 MENTS.—Any payment which is included 12 in the gross income of such child and made 13 by an Indian tribal government (as defined 14 in section 139E(c)(1)), or from a trust of 15 which the Indian tribal government is 16 treated as the owner under subpart E of 17 part I of subchapter J, to or for the ben- 18 efit of such child if— 19 ‘‘(I) such child or a family mem- 20 ber (within the meaning of section 21 267(c)(4)) is an enrolled member of 22 the tribe with respect to such Indian 23 tribal government, and 24 VerDate Sep 11 2014 04:57 Jul 12, 2019 Jkt 034408 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2079.IS S2079 pbinns on DSK79D2C42PROD with BILLS 3 •S 2079 IS ‘‘(II) such payment is made by 1 reason of such enrollment. 2 ‘‘(iii) CERTAIN PAYMENTS FROM NA- 3 TIVE CORPORATIONS OR SETTLEMENT 4 TRUSTS.—Any payment which is included 5 in the gross income of such child and— 6 ‘‘(I) made by a Native corpora- 7 tion (as defined in section 646(h)(2)) 8 to or for the benefit of such child if 9 such child or a family member (within 10 the meaning of section 267(c)(4)) has 11 an equity interest in the Native cor- 12 poration, or 13 ‘‘(II) made by a Settlement 14 Trust (as defined in section 15 646(h)(4)) to or for the benefit of 16 such child if such child or a family 17 member (within the meaning of sec- 18 tion 267(c)(4)) has a beneficial inter- 19 est in such Settlement Trust.’’. 20 (b) EFFECTIVE DATE.—The amendment made by 21 this section shall apply to taxable years beginning after 22 December 31, 2017. 23 Æ VerDate Sep 11 2014 04:57 Jul 12, 2019 Jkt 034408 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\S2079.IS S2079 pbinns on DSK79D2C42PROD with BILLS