IRS sells SD Indian tribe's land to settle debt [View All]

PIERRE, S.D. (AP) -- The Internal Revenue Service on Thursday auctioned off a large swath of land owned by an impoverished Indian tribe to help pay off more than $3 million in back taxes, penalties and interest - a sale the tribe says is illegal under federal laws protecting Indian land.

The 7,100 acres, or 11 square miles, of Crow Creek Sioux tribal land in central South Dakota ranch sold for almost $2.6 million, less than the $4.6 million it was appraised at, said IRS spokeswoman Carrie Resch. She did not say who bought the land.

The tribe filed a lawsuit Monday in U.S. District court in Pierre seeking to block the sale. Judge Roberto A. Lange declined their request but promised to schedule a trial to hear the tribe's arguments.

The land in question was part of the tribe's original reservation established in an 1868 treaty, and was held by the federal government in a trust for the tribe. But it was eventually allotted to individual tribal members, who then sold it to non-Indians, putting it outside the tribe's legal jurisdiction.

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