Ezel / IRS Rulings / 201024050

CCA 201024050: Tribes may use alternate procedures for section 3402(r) withholding

Number
201024050
Outcome
Advice
Document type
Chief Counsel Advice
IRS subject
Withholding on Payments of Indian Casino Profits
Topics
Employment taxes
Code sections
§ 3402
Ruling dated
January 14, 2010
Publicly released
June 18, 2010
Source
View Official PDF

Apply this to your situation

This page covers legal advice the IRS Office of Chief Counsel wrote for IRS staff, issued in 2010, which can't be cited as precedent. Ask about your situation and see what the current Code and IRS guidance say, with citations.

Currency note: this determination was released in 2010
Statutory amendments, regulation changes, court decisions, or later IRS guidance may have changed the analysis since then. Treat this page as historical context, not current tax advice. Verify current law before relying on any specific rule, threshold, or position mentioned here.
Not precedent. Under 26 U.S.C. § 6110(k)(3), this written determination may not be used or cited as precedent. It is advice from the IRS Office of Chief Counsel to IRS personnel on the facts they presented, and identifying details were redacted by the IRS before release. The official IRS release (linked on this page as a PDF) is the authoritative source.
About this page: The plain-English summary and ruling snapshot below were written by Ezel based on the official IRS release. The full text is the IRS's own document.
View official IRS release (PDF)

Plain-English summary

The Office of Chief Counsel addressed federal withholding on payments covered by IRC § 3402(r). It advised that an Indian tribe may use an alternate procedure if the amount withheld is substantially the same as the amount that would be withheld using the Commissioner's tables in Publication 15-A. The advice quotes the regulation's general rule and its alternate-procedure rule.

Ruling snapshot

  • Question: May an Indian tribe use an alternate procedure for withholding under IRC § 3402(r)?
  • Outcome: Advice given
  • Key authorities: IRC § 3402(r); Treas. Reg. § 31.3402(r)-1(a)(2), (a)(4)

Full text (IRS public release)

ID: CCA_2010011412234970 Number: 201024050
Release Date: 6/18/2010
Office:
UILC: 3402.20-00

From: ----------------------
Sent: Thursday, January 14, 2010 12:23:51 PM
To: --------------------------
Cc:
Subject: 3402(r) withholding

Under the section 3402(r) regulation, a tribe can use "any procedure . . . provided that the amount of tax deducted and withheld is substantially the same as it would be using the tables . . . " in Pub. 15A. See text of Reg below.

Reg. 31.3402(r)-1(a)(2):

(2) Withholding tables. Except as provided in paragraph (a)(4) of this section, the amount of a payment's proportionate share of the annualized tax shall be determined under the applicable table provided by the Commissioner.

Reg. 31.3402(r)-1(a)(4):

(4) Alternate withholding procedures--(i) In general. Any procedure for determining the amount to be deducted and withheld under section 3402(r) may be used, provided that the amount of tax deducted and withheld is substantially the same as it would be using the tables provided by the Commissioner under paragraph (a)(2) of this section. At the election of an Indian tribe, the amount to be deducted and withheld under section 3402(r) shall be determined in accordance with this alternate procedure.

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