Hutterite colonies are formed voluntarily by adults who agree upon certain rights and obligations among themselves and on behalf of their families. The main purpose of the colonies is to live a communal life following the tenets of the Hutterische Church society. The colonies, while religious, engage in agricultural activities (farming, raising stock, dairying, etc.).

The Hutterite colonies listed in this subsection SI DEN00501.010G have been reviewed and are nonprofit and tax-exempt under Section 501(d).

The living arrangement (LA) for adults living in a Hutterite colony is always "A." For a child living with parents, the LA code is "C." The value of the one-third reduction (VTR) cannot apply because the food and shelter is provided by the corporation and not the householder. For more information about the VTR, see SI 00835.200.

All food, clothing, and shelter is owned and provided by the colony and represents ISM to individual colony members, subject to the presumed maximum value (PMV). If an individual rebuts the amount of ISM counted as income under the PMV rule, follow the instructions in SI 00835.320. The "Church Amendment" ISM exclusion found in SI 00835.710 does not apply because the colonies are not institutions.

Hutterite members can receive cash payments from the colony to meet special expenses. Count these payments as unearned income unless they can be excluded under some other provision, such as the infrequent or irregular income exclusion found in SI 00810.410.

Tax returns (if filed) of individual colony members may show a distributive share of earnings from the colony. The distributive share may be identified as partnership income, dividends, or other income. For tax purposes a distributive share may be reportable to the Internal Revenue Service (IRS), but do not count this income unless actually received by the colony member.

It is possible for a member to have other income (earned or unearned) from a source outside the colony. Even though such income would be turned over to the colony under the membership rules, it would count as income to the individual member in the month of receipt. Any questionable income should be brought to the attention of the Regional Office for possible referral to the Office of the General Counsel (OGC).

The assets of the colony are not resources to individual members filing for or receiving SSI. Examination of the corporate (or association) by-laws may be necessary to determine whether individual members have any ownership interest.

Offices with Hutterite colonies in their service area may want to obtain precedent information for SSI claims. For colonies not listed in DEN00501.010G in this section, request the information listed below. If you obtain this information, please send it for evaluation by Denver OGC to ||SEA CPS .

1. 1. 

   Articles of incorporation or articles of association (including by-laws);

2. 2. 

   Most recent income tax return for the colony;

3. 3. 

   Most recent personal income tax return for the SSI claimant (or deemor);

4. 4. 

   Evidence showing the colony's status with IRS (IRS tax exempt ruling);

5. 5. 

   Evidence from a knowledgeable source explaining if members receive their distributive share of the colony's income.

For each of the colonies listed below, colony property has been determined not to be available to individual members of the colony, and so, it is not a resource for SSI purposes. Absent evidence to the contrary, accept an allegation that an individual is a member of a colony as long as the individual lives in the colony.

* Mailing address is North Dakota. The colony is located in South Dakota.