
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC271]

 
                     TITLE 26--INTERNAL REVENUE CODE
 
                        Subtitle A--Income Taxes
 
                  CHAPTER 1--NORMAL TAXES AND SURTAXES
 
               Subchapter B--Computation of Taxable Income
 
                      PART IX--ITEMS NOT DEDUCTIBLE
 
Sec. 271. Debts owed by political parties, etc.


(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, 
Sec. 2104(a), Oct. 4, 1976, 90 Stat. 1901.)


                               Amendments

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


                    Effective Date of 1976 Amendment

    Section 2104(b) of Pub. L. 94-455 provided that: ``The amendment 
made by subsection (a) [amending this section] shall apply to taxable 
years beginning after December 31, 1975.''

                  Section Referred to in Other Sections

    This section is referred to in sections 166, 276, 527 of this title.
