Nov. 16, 2010 (United Press International) -- The IRS is widening its investigation of Miccosukee finances in Florida in a sweep that potentially affects the entire tribe, court papers say.
The IRS has issued summonses to review all financial information from 2006 through 2009 involving Morgan Stanley (NYSE:MS) , Citibank, Wachovia and American Express (NYSE:AXP) transactions, The Miami Herald reported Tuesday.
Federal Judge Alan Gold last week refused to retract his August decision that allowed federal authorities to investigate former tribal Chairman Billy Cypress. Tossing out his own ruling would have blocked the IRS from broadening the investigation, which now calls for "all documents pertaining to the Miccosukee Tribe in any capacity."
Potentially, any member of the tribe who has done business with the four banks could be caught up in the probe.
At the center of the investigation is an untold sum paid out to tribal members from the proceeds of the tribe's gambling businesses.
Federal laws require individual tribal members to pay taxes on money they receive from the tribe, although the tribe, a sovereign nation, does not pay taxes.
How much tribal members receive from the gambling revenue is unknown, but a source said one tribal payout in August 2009 awarded each member $48,000.
In the tribe's defense, attorney Sonia Escobio O'Donnell wrote, "There is no proper purpose for the IRS to obtain unfettered access to all the financial account information of the tribe."
