---
kind: "section"
citation: "26 U.S.C. § 271"
title: "26"
title_heading: "Internal Revenue Code"
number: "271"
heading: "Debts owed by political parties, etc."
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/26/271"
units:
  - "Subtitle A — Income Taxes"
  - "Chapter 1 — Normal Taxes and Surtaxes"
  - "Subchapter B — Computation of Taxable Income"
  - "Part IX — Items Not Deductible"
---

# §271. Debts owed by political parties, etc.

- (a) **General rule—** In the case of a [taxpayer](/usc/26/1313.md?p=b) (other than a bank as defined in [section 581](/usc/26/581.md)) no deduction shall be allowed under [section 166](/usc/26/166.md) (relating to bad debts) or under [section 165(g)](/usc/26/165.md?p=g) (relating to worthlessness of [securities](/usc/26/368.md?p=a-2-F-vii)) by reason of the worthlessness of any debt owed by a political party.
- (b) **Definitions—**
  - (1) **Political party—** For purposes of [subsection (a)](#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](/usc/26/414.md?p=m-6-A) 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)](#b-1-C), the term “contributions” includes a gift, subscription, loan, advance, or deposit, of money, or anything of [value](/usc/26/851.md?p=c-4), and includes a [contract](/usc/26/101.md?p=f-3-A), promise, or agreement to make a contribution, whether or not legally enforceable.
  - (3) **Expenditures—** For purposes of [paragraph (1)(C)](#b-1-C), the term “expenditures” includes a payment, distribution, loan, advance, deposit, or gift, of money, or anything of [value](/usc/26/851.md?p=c-4), and includes a [contract](/usc/26/101.md?p=f-3-A), promise, or agreement to make an expenditure, whether or not legally enforceable.
- (c) **Exception—** In the case of a [taxpayer](/usc/26/1313.md?p=b) who uses an accrual method of accounting, [subsection (a)](#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](/usc/26/1313.md?p=b)’s [trade or business](/usc/26/1402.md?p=c) 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](/usc/26/1313.md?p=b) were due from political parties, and
  - (2) the [taxpayer](/usc/26/1313.md?p=b) made substantial continuing efforts to collect on the debt.

## Source credit

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

## Notes

### Editorial Notes

### Amendments

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

### Statutory Notes and Related Subsidiaries

### 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.”