Rev. Rul. 84-93

1984-1 C.B. 279, 1984-26 I.R.B. 13.

                       Internal Revenue Service (I.R.S.)

                                 Revenue Ruling

    INDIAN TRIBAL GOVERNMENTS; TREATMENT AS STATES OR POLITICAL SUBDIVISIONS

                            Published: June 25, 1984

Section 7871. - -Indian Tribal Governments Treated As States for Certain Purposes, 26 CFR 305.7871-1: Indian tribal governments treated as States for certain purposes

(Also Sections 61, 103, 170, 2055, 4041, 4221, 4253, 4483; 1.61-7, 1.103-1, 1.170a-1, 20.2055-1, 48.4041-11, 48.4221-5, 49.4253-12, 41.4483-1.)

  Indian tribal governments; treatment as states or political subdivisions. Rev. Rul. 58-610, Rev. Rul. 68-231 and Rev. Rul. 74-179 are suspended as to their respective applications to Indian tribes, or subdivisions thereof, during the specified two years under section 7871 of the Code.

  The Service has held that for certain federal tax purposes an Indian tribe is neither a state, a territory or a political subdivision. See Rev. Rul. 58-610, 1958-2 C.B. 815, Rev. Rul. 68-231, 1968-1 C.B. 48 and Rev. Rul. 74-179, 1974-1 C.B. 279.

  The Indian Tribal Governmental Tax Status Act of 1982, (Title II of Pub.L. No. 97-473, 96 Stat. 2605, 2607-11, as amended by Pub.L. No. 98-21, 97 Stat. 65, 87 [1983-1 C.B. 510, 511] added certain provisions to the Code that pertain to the status of Indian tribal governments. For two years beginning in 1983, Indian tribal governments (or subdivisions thereof) will be treated as states (or political subdivisions thereof) for specified federal tax purposes. For example, under new section 7871 of the Code interest on public activity bonds issued during the years 1983 and 1984 by a tribal government may be tax exempt, and a tribal government will be entitled to exemption from certain excise taxes. Also, charitable contributions made in 1983 and 1984 to or for the use of a tribal government may be deductible under the federal gift and estate tax laws. Charitable contributions made during a taxpayer's tax years beginning in 1983 and 1984 may be deductible under the federal income tax laws.

  The term "Indian tribal government" is defined under section 7701(a)(40) of the Code, as amended, to mean the governing body of any tribe, band, community, village or group of Indians, or (if applicable) Alaska Natives, that is determined by the Secretary of the Treasury, after consultation with the Secretary of the Interior, to exercise governmental functions. Section 7871(d) of the Code provides that for purposes of section 7871, a subdivision of an Indian tribal government shall be treated as a political subdivision of a state if (and only if) the Secretary of the Treasury determines (after consultation with the Secretary of the Interior) that such subdivision has been delegated the right to exercise one or more of the substantial governmental functions of the Indian tribal government.

EFFECT ON OTHER REVENUE RULINGS

  Rev. Rul. 58-610, Rev. Rul. 68-231 and Rev. Rul. 74-179 are suspended as to their respective applications to Indian tribes, or subdivisions thereof, that qualify during the specified two years under section 7871 of the Code.

Rev. Rul. 84-93, 1984-1 C.B. 279, 1984-26 I.R.B. 13.