SECTION 1. GENERAL

.01 PURPOSE The purpose of this revenue procedure is to provide a modified and supplemented list of Indian tribal governments that are to be treated similarly to states for specified purposes under the Internal Revenue Code.

.02 CHANGES One tribe was added to the list of Indian tribal governments published in Rev. Rul. 2001–15. In addition, there were several tribal name changes.

.03 BACKGROUND The Indian Tribal Governmental Tax Status Act of 1982 (Title II of Pub. L. No. 97–473, 1983–1 C.B. 510, 511, as amended by Pub. L. No. 98–21, 1983–2 C.B. 309, 315) added certain provisions to the Code that pertain to the status of Indian tribal governments. Section 7871(a) of the Internal Revenue Code and Section 305.7871–1 of the Income Tax Regulations provide that Indian tribal governments (or subdivisions thereof) will be treated as states for certain enumerated federal tax purposes. For example, charitable contributions to or for the use of a tribal government may be deductible under the federal income, gift, and estate tax laws; a tribal government is entitled to exemption from certain excise taxes; taxes imposed by a tribe may be deductible; and public activity bonds may be tax exempt

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excise taxes, the entity must be able to demonstrate that the underlying transaction involves the exercise of an essential governmental function of the Indian tribal government.