11. During 2003 and 2004, Santa Ynez made “per capita” payments to its members from revenues derived from gaming activities. Federal law, at 25 U.S.C. § 2710(b)(3)(D), makes such payments subject to federal income taxation and 26 U.S.C. § 3402(r) make such payments subject to federal withholding requirements. 12. During 2003 and 2004, Santa Ynez failed to withhold, or underwithheld, federal taxes on payments made to some tribal members. 13. The IRS later conducted an audit of Santa Ynez for those years and assessed taxes, interest and penalties against the Tribe for 2003 and 2004. Bottom Line: Tribe wants 3.8 million back from IRS