Sioux Tribe settles tax debt with IRS, buys back land

The Crow Creek Sioux Tribe has settled its tax debt with the IRS and lined up a loan that will enable it to buy back the 11 square miles of land the IRS sold at auction in December, the tribal chairman said. A stipulation filed in court last week indicates the tribe will dismiss its lawsuit, which sought to prevent the IRS from selling the Hyde County land. That will cancel a May 4 trial. The IRS took the unusual step of seizing and selling the land because the tribe refused to pay $3.12 million in employment taxes, penalties and interest it racked up since 2001. At $2.58 million, the winning bid did not fully satisfy the debt. But tribal chairman Brandon Sazue, who met with government officials in Washington last week, said the IRS is forgiving what's left. "We don't owe the IRS anything at this point in time, as long as we drop the lawsuit," Sazue said. A spokesman for the Department of Justice's tax division acknowledged a deal was struck but could not provide any detail...read more