IRS to auction land on Indian reservation

[Nagishkaw 510]

SIOUX FALLS, S.D. — The Internal Revenue Service plans to auction land on one of America's poorest Indian reservations today, after efforts Wednesday to block the sale in U.S. District Court failed.

According to a federal lawsuit filed by the Crow Creek Sioux Tribe, the IRS intends to auction the land to settle delinquent federal employment taxes it maintains are owed by the tribe.

On Wednesday, a judge denied the restraining order seeking to block the sale, but, according to Terry Pechota, the attorney for Crow Creek Tribal Farms, the judge indicated that he would set the case for trial.

The auction will occur, but no land would change hands until after a court date in late March, said Duane St. John, a member of the tribal council.

The tribe has been planning to develop wind energy, and "this is our prime wind energy land," St. John said. "So that's going to be another big hurt to us."

At issue: About 7,100 acres of land on the Crow Creek Indian Reservation in central South Dakota, the tribe said in a lawsuit filed Tuesday in U.S. District Court.

Indian tribes are usually not subject to federal taxes, but there are exceptions for business entities associated with tribes, said David Getches, dean of the University of Colorado Law School.

According to the lawsuit, as of August, the tribe owed the IRS about $3,123,790 in back taxes, penalties and interest. The estimated value of the land is $4,634,000, according to a Pierre appraisal company, court records show.

The land is now owned by Crow Creek Tribal Farms, a corporation formed under tribal laws which filed for bankruptcy in May 2009, according to records from the U.S. Bankruptcy Court for the District of South Dakota.

In its lawsuit, the tribe claims that because of erroneous tax advice received from the Bureau of Indian Affairs (BIA), it became delinquent in payment of employment taxes around 2003.

The tribe maintains that it was told that because it was a federally recognized tribe, it was not necessary to pay federal employment taxes, the lawsuit states. The lawsuit does not specify what type of employment was involved.

Nedra Darling, spokeswoman for the Department of the Interior, which oversees the BIA, and IRS spokeswoman Carrie Resch said their agencies do not comment on pending litigation.

"It's the first time I've ever heard of the IRS moving against tribally owned property in this manner," said Robert Williams Jr., a law professor and director of the Indigenous Peoples Law and Policy Program at the University of Arizona.

http://www.usatoday.com/news/nation/2009-1...n-auction_N.htm

[Gary and Alla 3,696]

What are you aorried about? 130 years from now some guy that won't be born for another 75 years will apologize and everything will be OK. sheesh. You act like someone will do something to Indians that they can't be forgiven for when someone unrelated apologizes 130 years later.

[Nagishkaw 510]

[Niels Bohr 72]

They're trying to steal Indian Reservations.

[Staashi 371]

I don't like the idea of selling off reservation land, but I do have to take aim with the $3.5 million owed in unpaid taxes - that's not cool. hmmmmmmmmm

[Niels Bohr 72]

It's Indian land. They owned the land first even before the US was born.

[Ban Hammer 14,295]

They're trying to steal Indian Reservations.

not surprising at all

[sara..... 371]

OH MY GOD have we not stolen enough? this country belongs to them we gave them some pitiful land to live on starved them raped their women and killed their men took their children forced religion and education on them all in the name of civilizational and we called them savages........?

but wait seems to be a habit of ours dont it????????

just my opinion

sara

Edited December 3, 2009 by estadia

[one...two...tree 2,762]

Just wrong. I can't believe that the judge would allow this since that Reservation Land is considered a sovereign nation...albeit limited. Somebody higher up needs to step up and prevent this travesty of justice.

[Ban Hammer 14,295]

Just wrong. I can't believe that the judge would allow this since that Reservation Land is considered a sovereign nation...albeit limited. Somebody higher up needs to step up and prevent this travesty of justice.

i sure hope obama can do something about this once he takes office.

[one...two...tree 2,762]

Just wrong. I can't believe that the judge would allow this since that Reservation Land is considered a sovereign nation...albeit limited. Somebody higher up needs to step up and prevent this travesty of justice.

i sure hope obama can do something about this once he takes office.

i sure hope you don't quit your day job because your stand up routine is as stale as 7 day old bread.

Edited December 3, 2009 by Galt's gallstones

[Ban Hammer 14,295]

Just wrong. I can't believe that the judge would allow this since that Reservation Land is considered a sovereign nation...albeit limited. Somebody higher up needs to step up and prevent this travesty of justice.

i sure hope obama can do something about this once he takes office.

i sure hope you don't quit your day job because your stand up routine is as stale as 7 day old bread.

7 day old bread isn't bad if you're hungry.

[one...two...tree 2,762]

Just wrong. I can't believe that the judge would allow this since that Reservation Land is considered a sovereign nation...albeit limited. Somebody higher up needs to step up and prevent this travesty of justice.

i sure hope obama can do something about this once he takes office.

i sure hope you don't quit your day job because your stand up routine is as stale as 7 day old bread.

7 day old bread isn't bad if you're hungry.

good save.

[_Simpson_ 250]

3.5 million in unpayed taxes, if auctioning off the land isnt the solution what do people suggest? There is no easy answer and not everybody is going to be happy but dam 3.5 million. I say that we dont charge them any taxes and let them have the land free of taxes but in the process quit subsidizing them, I think thats a reasonable solution but not very likely to happen.

Edited December 3, 2009 by _Simpson_

[sara..... 371]

3.5 million in unpayed taxes, if auctioning off the land isnt the solution what do people suggest? There is no easy answer and not everybody is going to be happy but dam 3.5 million. I say that we dont charge them any taxes and let them have the land free of taxes but in the process quit subsidizing them, I think thats a reasonable solution but not very likely to happen.

i dont think they should have to pay any taxes........this land was theirs we took it we owe then a lot

sara