Ezel / IRS Rulings / 1024050
Chief Counsel Advice 1024050 Released June 18, 2010 Advice

CCA 1024050: Tribes may use alternate procedures for section 3402(r) withholding

Apply this to your situation

This page covers one taxpayer's ruling from 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 resolved one taxpayer's situation on its specific facts, 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.

Get today's answer for your situation

You just read what the IRS ruled for one taxpayer in 2010, and it can't be cited as precedent. Ezel checks the current Internal Revenue Code and IRS guidance and answers your specific situation, with citations.

Opens in Ezel Pro. Every answer cites the authority it relies on.