Miccosukees Definitely in the Running for Tax Offender of the Year

When I last reported on the Miccosukees (a South Florida Indian tribe that runs a casino), the tribe decided to apparently ignore the advice of their then-attorney and not withhold taxes on earnings of their members. They now have been accused of not remitting taxes they withheld from patrons.

Via Taxdood comes news that the Miccosukees face a lawsuit from two patrons who played Bingo at their casino, won, and had taxes withheld from their winnings. The patrons weren’t amused when the IRS informed them that the supposedly withheld funds–withholding that appeared on their W-2Gs–didn’t make it to the IRS.

One interesting issue is whether the Miccosukees can be sued in federal court by the patrons. I suspect that the case may end up in tribal court. However, I also suspect that the IRS can cause nightmares for the Miccosukees if they aren’t remitting withheld money to the IRS.

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