Featured Chrome Extensions:

Casey IRACs are produced by an AI that analyzes the opinion’s content to construct its analysis. While we strive for accuracy, the output may not be flawless. For a complete and precise understanding, please refer to the linked opinions above.

Keywords

appealtreaty
appealtreaty

Related Cases

Brinker v. Humphries, 194 F.2d 350, 90 U.S.App.D.C. 180
View Case »
Estate of Mayberry v. Mayberry, 318 Ark. 588, 886 S.W.2d 627
View Case »
Boston Safe Deposit and Trust Co. v. Boone, 21 Mass.App.Ct. 637, 489 N.E.2d 209
View Case »
In re Atwood, 293 B.R. 227, 41 Bankr.Ct.Dec. 93, 03 Cal. Daily Op. Serv. 4246, 2003 Daily Journal D.A.R. 5425
View Case »
McDaniel v. McDaniel, 288 Ga. 711, 707 S.E.2d 60, 11 FCDR 542
View Case »
Justia Law Link
LexisNexis Link
Westlaw Link
CourtListener Link
Oyez Link

Perkins v. Commissioner of Internal Revenue, 970 F.3d 148, 126 A.F.T.R.2d 2020-5674, 2020-2 USTC P 50,163

Facts

Alice Perkins, an enrolled member of the Seneca Nation, and her husband Fredrick operated A & F Trucking, which mined and sold gravel from land within the Allegany Territories. They filed their income taxes for 2008 and 2009 late, claiming the income from gravel sales was exempt from federal income tax based on the General Allotment Act and two treaties with the Seneca Nation. After an IRS audit, the Perkinses were issued a notice of deficiency, leading them to seek redetermination of their tax liabilities in Tax Court.

Alice Perkins is an enrolled member of the Seneca Nation of Indians (the “Seneca Nation” or the “Nation”) who resides on the Seneca Nation's Allegany Territories with her husband, Fredrick. Together they operate A & F Trucking, which was involved in the mining and sale of gravel from land located within the Allegany Territories.

Issue

Whether the income earned by the Perkinses from the sale of gravel mined from Seneca Nation land is exempt from federal income taxation under the treaties between the United States and the Seneca Nation.

The dispute is a legal one: whether either of two treaties operates to exempt the Perkinses’ gravel-mining income from federal income taxation.

Rule

To determine if an American Indian treaty creates an exemption from federal income taxes, courts look beyond the written words to the larger context, including the history of the treaty, negotiations, and practical construction adopted by the parties.

To determine whether an American Indian treaty creates an exemption from federal income taxes we 'look beyond the written words to the larger context that frames the Treaty, including ‘the history of the treaty, the negotiations, and the practical construction adopted by the parties.’

Analysis

The court analyzed the language and historical context of the Treaty of Canandaigua and the 1842 Treaty with the Seneca. It concluded that while the treaties may contain language regarding the use and enjoyment of land, they do not explicitly provide an exemption from federal income taxes for income derived from that land. The court emphasized that tax exemptions must be clearly expressed and cannot be implied.

We agree with the tax court. To the extent the language of either treaty could be construed to offer an exemption from taxes, those exemptions are constrained by the historical contexts under which they were drafted and therefore neither exemption extends to the Perkinses’ gravel mining revenue.

Conclusion

The Court of Appeals affirmed the Tax Court's decision, concluding that neither the Treaty of Canandaigua nor the 1842 Treaty with the Seneca exempted the Perkinses' gravel-mining income from federal income taxation.

Because neither treaty exempts the Perkinses’ gravel-mining income from federal income taxation, we affirm the tax court's decision and remand for further proceedings consistent with this opinion.

Who won?

The United States prevailed in the case because the court found that the treaties did not provide an exemption from federal income taxes for the Perkinses' income.

The Court of Appeals, Wesley, Senior Circuit Judge, held that: 1 in a matter of first impression, the Canandaigua Treaty did not exempt taxpayers' income from taxation, and 2 in a matter of first impression, the 1842 Treaty with the Seneca did not exempt taxpayer's income from federal taxation.

You must be