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Congress subpoenas Executive Branch officials for questions on tax documents

By

Benny Polacca

The Second Osage Nation Congress issued two subpoenas for the Nation’s Treasurer and Human Resources director to appear before the Congressional Affairs Committee regarding the Congress members’ compensation and income taxation on April 15.

At issue is whether the twelve elected members of the Legislative Branch are receiving the proper documents for filing tax forms each year with the Internal Revenue Service. Speaker Jerri Jean Branstetter issued the subpoenas to hear testimony from Treasurer William Kemble and Human Resources Director Bill Foster on April 7. Both Executive Branch officials appeared before the committee one week later.

Congresswoman Shannon Edwards, who was elected as part of the first ON Congress in 2006, explained the compensation and tax inquiries began when she and other Congress members started receiving questions from tax preparer officials about the documents being used to report their income for tax purposes through the years.

“The first year, what I recall, is I received a 1099 (from the Nation) and that’s the only thing I got, which would indicate that I was a personal contractor under IRS guidelines,” Edwards said of 2006 and 2007 tax reporting years. In 2008, Edwards said she received a W-2 from the Nation instead of a 1099 and in another tax reporting year, she received both. “And this is where my tax person started asking me ‘what’s changed now that all of a sudden you’re receiving two kinds of tax documents instead of one?’” Edwards said.

Kemble and Foster said they did not know how the changes in the tax documents started. Kemble was appointed and confirmed as Treasurer last year and Foster said he did not participate in any decisions to change the forms for reporting Congressional compensation. 

A W-2 form (known as a wage and tax statement) is typically issued yearly by employers to employees to report the employee’s annual wages and taxes withheld from his or her paycheck. In the case of a form 1099-MISC, this form is used by non-employees, such as independent contractors or attorneys when reporting income not withheld by the companies employing their services, according to investopedia.com.   

Edwards asked why Congress members were receiving different documents, especially if the same documents were not issued to the Principal Chief and Assistant Principal Chief, which are both elected positions as well.

“I agree that all the elected officials should be treated and paid the same,” said Kemble. He also said it was “very uncommon” for the Congress members to be receiving the two different tax documents.  

“For those fiscal years that I wasn’t here, since it is the responsibility of the Treasurer, I can’t answer on behalf of my predecessor. I’m surprised to hear that W-2s and 1099’s were issued, I don’t know the rationale for that, I can’t really answer on his behalf,” said Kemble who replaced former Treasurer John Jech after Principal Chief John Red Eagle appointed Kemble last fall. Chief Red Eagle was elected in July 2010.

The meeting discussion also raised questions of whether ON Congress members are considered employees of the Nation as well as whether Congress members are also considered “tribal council” members, according to IRS regulations. At the meeting’s end, Kemble agreed to a telephone conference with an IRS official and at least one member of Congress on the compensation issues.  

Loyed Gill, Congressional legal counsel, told the Osage News the conference call was held April 26. “The IRS informed us that Members of Congress should be receiving W-2’s, and not 10-99’s under IRS Revenue Ruling 59-354,” Gill said in an email, adding he was awaiting additional responses from the IRS regarding other related issues.

The April 15 Congressional Affairs Committee meeting occurred one week later after Second Speaker Raymond Red Corn motioned for Branstetter to issue the subpoenas for Kemble and Foster to appear before the committee. The motion unanimously passed. Red Corn, who is chairman of the committee, said he sought the meeting after previous inquiries on the tax document issues went unanswered.

Red Corn’s request for a subpoena is based on ONCA 07-48, which gives Congress the authority to issue subpoenas. It was passed by the First ON Congress. Branstetter said this is the first time the Second ON Congress has used the subpoena authority.


Original Publish Date: 2011-06-08 00:00:00

Author

  • Benny Polacca

    Title: Senior Reporter

    Email: bpolacca@osagenation-nsn.gov

    Instagram: @bpolacca

    Topic Expertise: Government, Tribal Government, Community

    Languages spoken: English, basic knowledge of Spanish and French

    Benny Polacca (Hopi/ Havasupai/ Pima/ Tohono O’odham) started working at the Osage News in 2009 as a reporter in Pawhuska, Okla., where he’s covered various stories and events that impact the Osage Nation and Osage people. Those newspaper contributions cover a broad spectrum of topics and issues from tribal government matters to features. As a result, Polacca has gained an immeasurable amount of experience in covering Native American affairs, government issues and features so the Osage readership can be better informed about the tribal current affairs the newspaper covers.

    Polacca is part of the Osage News team that was awarded the Native American Journalists Association's Elias Boudinet Free Press Award in 2014 and has won numerous NAJA media awards, as well as awards from the Oklahoma Press Association and SPJ Oklahoma Pro Chapter, for storytelling coverage and photography.

    Polacca earned his bachelor’s degree from Arizona State University and also participated in the former American Indian Journalism Institute at the University of South Dakota where he was introduced to the basics of journalism and worked with seasoned journalists there and later at The Forum daily newspaper covering the Fargo, N.D. area where he worked as the weeknight reporter.

Benny Polacca
Benny Polaccahttps://osagenews.org

Title: Senior Reporter

Email: bpolacca@osagenation-nsn.gov

Instagram: @bpolacca

Topic Expertise: Government, Tribal Government, Community

Languages spoken: English, basic knowledge of Spanish and French

Benny Polacca (Hopi/ Havasupai/ Pima/ Tohono O’odham) started working at the Osage News in 2009 as a reporter in Pawhuska, Okla., where he’s covered various stories and events that impact the Osage Nation and Osage people. Those newspaper contributions cover a broad spectrum of topics and issues from tribal government matters to features. As a result, Polacca has gained an immeasurable amount of experience in covering Native American affairs, government issues and features so the Osage readership can be better informed about the tribal current affairs the newspaper covers.

Polacca is part of the Osage News team that was awarded the Native American Journalists Association's Elias Boudinet Free Press Award in 2014 and has won numerous NAJA media awards, as well as awards from the Oklahoma Press Association and SPJ Oklahoma Pro Chapter, for storytelling coverage and photography.

Polacca earned his bachelor’s degree from Arizona State University and also participated in the former American Indian Journalism Institute at the University of South Dakota where he was introduced to the basics of journalism and worked with seasoned journalists there and later at The Forum daily newspaper covering the Fargo, N.D. area where he worked as the weeknight reporter.

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