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In a long-running battle, the IRS also has smacked hundreds of the tribe’s members with separate bills totaling $58 million for their failure to pay personal income taxes on those distributions during the same period, 2000 to 2005, records show.
The agency’s crackdown comes after years of fighting with the 600-member tribe over its refusal to pay taxes on the distribution of profits from its casino operation off the Tamiami Trail. The assessments for back taxes, interest and penalties, outlined in federal tax lien notices filed in Miami-Dade Circuit Court, reveal for the first time the sheer scope of the tribe’s tax problems with the IRS.
Without the extras, the tribe’s withholding taxes alone for 2000 to 2005 totaled $45 million, and individual members’ taxes amounted to $30 million for that period, according to the tax liens.
The tax obligations of the tribe and its members are expected to soar because IRS examiners also are auditing the Miccosukee’s gambling distributions for the years 2006-2010, when payouts to each member were as high as $160,000 annually.
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Source
Read more at: Tax Times blog