The Internal Revenue Service is moving to collect nearly $3 million owed by the Crow Creek Sioux Tribe of South Dakota, The Mitchell Daily Republic reports.

According to former chairman Wallace Wells, the IRS seized almost $400,000 in tribal funds. He said the money is owed due to a scheme in which the tribe allegedly withheld federal taxes from employee checks but never sent the taxes to the IRS.

The IRS has placed $2.8 million in liens on tribal property. Wells said some of the tribe's bank accounts have been frozen.

Tribal leaders have been criticized in recent years for their financial practices. At one point, a group of tribal members asked a court to appoint a receiver to take over the tribe.

Get the Story:
Crow Creek debt spurs IRS action (The Mitchell Daily Republic 8/13)
Crow Creek debt spurs IRS action (AP 8/13)

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