Income Tax & Individual Indian Money Accounts

Most income derived directly from land held in trust by the U.S. Government is exempt from federal and state taxation for individual Indians. However, all interest income, capital gain income, and certain royalties are subject to federal and state taxes. Each year, BTFA issues IRS Form 1099, which is a record of income to beneficiaries who received taxable income during the previous calendar year. This income includes: 

• Investment income from interest and capital gains. 
• Oil and gas interest payment income due to late or underpaid royalties. The amount of oil and gas related interest income earned in IIM accounts may fluctuate each year based on the length of time the oil and gas companies have underpaid. Therefore, please review the explanation of payment you receive to identify how much of each payment is interest income.  
• Royalty income received by members of the Five Civilized Tribes of Oklahoma. 
• Osage mineral trust income with a tax status of “competent.” 

Need help? 

Contact us if you have questions about your payment options or information reported on Form 1099. For questions about your personal tax situation, please consult a tax professional.