26-U.S.C.-271
§271 – Debts Owed By Political Parties, Etc.
Pathway
Title 26 > Subtitle A > Chapter 1 > Subchapter B > Part IX > Section 271
Details
- Reference: Section 271
- Legend: §271 – Debts Owed By Political Parties, Etc.
- USCode Year: 2013
Provision Content
(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 taxpayers 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.)
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.
U.S. Encyclopedia of Law Coverage
26-U.S.C.-271 in the Legal Encyclopedia: Income Taxes
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26-U.S.C.-263A in the Legal Encyclopedia: Tax Liability
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26-U.S.C.-269 in the Legal Encyclopedia: Taxation
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26-U.S.C.-264 in the Legal Encyclopedia: Liability
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