Internal Revenue Code · 26 U.S.C.

§ 271. Debts owed by political parties, etc.

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 271

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Enacted: October 4, 1976 by Pub. L. 94–455
Length: 3 subsections · 335 words · about 1 min to read
Defines: 3 terms
Cross-references: cites 3; cited by 4 Code sections and 1 other regulation
Regulations: 1 issued under this section

¶(a) General rule

In the case of a taxpayer (other than a bank as defined in section 581) no deduction shall be allowed under section 166 (relating to bad debts) or under section 165(g) (relating to worthlessness of securities) by reason of the worthlessness of any debt owed by a political party.

¶(b) Definitions

¶(1) Political party For purposes of subsection (a), the term “political party” means—

¶(A) a political party;

¶(B) a national, State, or local committee of a political party; or

¶(C) a committee, association, or organization which accepts contributions or makes expenditures for the purpose of influencing or attempting to influence the election of presidential or vice-presidential electors or of any individual whose name is presented for election to any Federal, State, or local elective public office, whether or not such individual is elected.

¶(2) Contributions

For purposes of paragraph (1)(C), the term “contributions” includes a gift, subscription, loan, advance, or deposit, of money, or anything of value, and includes a contract, promise, or agreement to make a contribution, whether or not legally enforceable.

¶(3) Expenditures

For purposes of paragraph (1)(C), the term “expenditures” includes a payment, distribution, loan, advance, deposit, or gift, of money, or anything of value, and includes a contract, promise, or agreement to make an expenditure, whether or not legally enforceable.

¶(c) Exception In the case of a taxpayer who uses an accrual method of accounting, subsection (a) shall not apply to a debt which accrued as a receivable on a bona fide sale of goods or services in the ordinary course of the taxpayer’s trade or business if—

¶(1) for the taxable year in which such receivable accrued, more than 30 percent of all receivables which accrued in the ordinary course of the trades and businesses of the taxpayer were due from political parties, and

¶(2) the taxpayer made substantial continuing efforts to collect on the debt.

(Aug. 16, 1954, ch. 736, 68A Stat. 82; Pub. L. 94–455, title XXI, § 2104(a), Oct. 4, 1976, 90 Stat. 1901.)

Terms defined here

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contributions § 271(b)(2)
expenditures § 271(b)(3)
political party § 271(b)(1)

Regulations under this section

Treasury regulations (26 CFR) issued under § 271

§ 1.271-1 Debts owed by political parties.

Cross-references

Computed from the citations in the text of Title 26 and 26 CFR.

This section cites 3 other sections

Cited by 4 Code sections

Cited in 1 regulation not issued under it

§ 1.527-3 Exempt function income.

Amendment history

From the source credit and the official notes, newest first.

October 4, 1976Enacted by Pub. L. 94–455Parts changed in 1976: (c)

Where it sits in the Code

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Official notes

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Editorial Notes

Amendments

1976—Subsec. (c). Pub. L. 94–455 added subsec. (c).

Effective Date of 1976 Amendment

Pub. L. 94–455, title XXI, § 2104(b), Oct. 4, 1976, 90 Stat. 1902, provided that: “The amendment made by subsection (a) [amending this section] shall apply to taxable years beginning after December 31, 1975.”