SECTION 1. PURPOSE AND
Internal Revenue Bulletin 2011-49 · 2026-10-03 edition · updated 2026-10-04 · United States
CHANGES
.01 Purpose. (1) This revenue procedure clarifies, modifies, and supersedes Rev. Proc. 2003–14, 2003–1 C.B. 319, which provides a safe harbor under which the Internal Revenue Service treats an Indian tribe as the grantor and owner of a trust for the receipt of gaming revenues under the Indian Gaming Regulatory Act (25 U.S.C. §§ 2701–2721) (IGRA) for the benefit of minors or legal incompetents. Under the safe harbor, beneficiaries of an IGRA trust are not required to include amounts in gross income under the economic benefit doctrine when transferred to, or earned by, the IGRA trust, but must include trust distributions in income when actually or constructively received.
(2) Rev. Proc. 2003–14 requested public comments. In response to those comments, this revenue procedure revises sections 5.02(5), 5.02(6), 5.02(8)(a), 5.02(8)(b), and 5.02(8)(e) of Rev. Proc. 2003–14, and adds a new section 5.02(9). .02 Changes . (1) Section 6 of Rev. Proc. 2003–14 added to Rev. Proc. 2003–3, 2003–1 C.B. 113, certain areas under § 451 and §§ 671–679 of the Internal Revenue Code in which the Service will not issue ruling or determination letters concerning IGRA trusts. Guidance superseding Rev. Proc. 2003–3 incorporates these no-rule areas. See sections 4.01(34), 4.01(41), 5.08, and 5.10 of Rev. Proc. 2011–3, 2011–1 I.R.B. 111, and its successors. Therefore, section 6 of Rev. Proc. 2003–14 is obsolete. (2) Section 5.02(5) removes the references to federal and local trust law because the validity of trusts is governed by state or tribal law.
2011–49 I.R.B. 834 December 5, 2011
IGRA to receive and invest per capita payments for its members who are minors or legal incompetents pending distribution of the trust assets to those members after they attain the age of majority or cease to be legal incompetents.
.03 Minor and legal incompetent . The terms “minor” and “legal incompetent” have the same meaning as in 25 CFR § 290.2 (relating to review of Indian tribal revenue allocation plans adopted under IGRA).
.04 Per capita payment . The term “ per capita payment” has the same meaning as in 25 CFR § 290.2, but does not include compensation for services.
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