26 U.S.C. § 271 — Debts owed by political parties, etc.

(a) General rule A taxpayer, other than a bank as defined in section 581, cannot deduct a debt owed by a political party as a bad debt under section 166, or as a worthless security under section 165(g). (b) Definitions "Political party" means: a political party itself; a national, state, or local committee of a political party; or a committee, association, or organization that accepts contributions or makes expenditures to influence the election of presidential or vice-presidential electors, or of anyone whose name is put forward for federal, state, or local elected office (win or lose). "Contributions" includes gifts, subscriptions, loans, advances, or deposits of money or anything of value, and includes promises to contribute, whether or not legally enforceable. "Expenditures" includes payments, distributions, loans, advances, deposits, or gifts of money or anything of value, and includes promises to spend, whether or not legally enforceable. (c) Exception For a taxpayer using the accrual method of accounting, subsection (a) doesn't block a deduction for a receivable that came from a genuine, ordinary-course sale of goods or services — but only if, in the year that receivable accrued, more than 30% of all the taxpayer's ordinary-course receivables were owed by political parties, and the taxpayer made real, ongoing efforts to collect the debt.