holding or neglecting to make any contribution of money or other valuable thing for any political purpose, shall be fined not more than $5,000 or imprisoned not more than three years, or both. (June 25, 1948, ch. 645, 62 Stat. 722.) 18 U.S.C. § 607. Place of Solicitation. (a) It shall be unlawful for any person to solicit or receive any contribution within the meaning of section 301(8) of the Federal Election Campaign Act of 1971 (2 U.S.C. § 431(8)) in any room or building occupied in the discharge of official duties by any person mentioned in section 603, or in any navy yard, fort, or arsenal. Any person who violates this section shall be fined not more than $5,000 or imprisoned not more than three years, or both. (b) The prohibition in subsection (a) shall not apply to the receipt of contributions by persons on the staff of a Senator or Representative in, or Delegate or Resident Commissioner to, the Congress, Provided, That such contributions have not been solicited in any manner which directs the contributor to mail or deliver a contribution to any room, building, or other facility referred to in subsection (a), and Provided That such contributions are transferred within seven days of receipt to a political committee within the meaning of section 302(e) of the Federal Election Campaign Act of 1971 (2 U.S.C. § 432(e)). (June 25, 1948, c. 645, 62 Stat. 722; as amended by Pub. L. 96-187, § 201, Jan. 8, 1980, 93 Stat. 1367.) 18 U.S.C. § 608. Limitations on Political Contributions and Purchases. [Repealed.] Pub. L. 94-283, Title II, § 201, May 11, 76, 90 Stat. 496. 18 U.S.C. § 609. Maximum Contributions and Expenditures. [Repealed.] Pub. L. 92-225, Title II, § 204, Feb. 7, 1972, 86 Stat. 10. I. Internal Revenue Code, Political Campaign Debts and 26 U.S.C. § 41. Contributions to Candidates for Public Office. (a) General rule. In the case of an individual, there shall be allowed, subject to the limitations of subsection (b), as a credit against the tax imposed by this chapter for the taxable year, an amount equal to one-half of all political contributions and all newsletter fund contributions, payment of which is made by the taxpayer within the taxable year. (b) Limitations. (1) Maximum credit.-The credit allowed by subsection (a) for a taxable year shall not exceed $50 ($100 in the case of a joint return under section 6013). (2) Application with other credits.-The credit allowed by subsection (a) shall not exceed the amount of the tax imposed by this chapter for the taxable year reduced by the sum of the credits allowable under section 33 (relating to foreign tax credit), section 37 (relating to credit for the elderly), and section 38 (relating to investment in certain depreciable property). (3) Verification.-The credit allowed by subsection (a) shall be allowed, with respect to any political contribution or newsletter fund contribution, only if such contribution is verified in such manner as the Secretary shall prescribe by regulations. (1) Political contribution.—The term "political contribution" means a contribution or gift of money to (A) an individual who is a candidate for nomination or election to any Federal, State, or local elective public office in any primary, general, or special election, for use by such individual to further his candidacy for nomination or election to such office; (B) any committee, association, or organization (whether or not incorporated) organized and operated exclusively for the purpose of influencing, or attempting to influence, the nomination or election of one or more individuals who are candidates for nomination or election to any Federal, State, or local elective public office, for use by such committee, association, or organization to further the candidacy of such individual or individuals for nomination or election to such office; (C) the national committee of a national political party; (D) the State committee of a national political party as designated by the national committee of such party; or (E) a local committee of a national political party as designated by the State committee of such party designated under subparagraph (D). (2) Candidate.-The term "candidate" means, with respect to any Federal, State, or local elective public office, an individual who (A) publicly announces before the close of the calendar year following the calendar year in which the contribution or gift is made that he is a candidate for nomination or election to such office; and (B) meets the qualifications prescribed by law to hold such office. (3) National political party.-The term "national political party" means— (A) in the case of contributions made during a taxable year of the taxpayer in which the electors of President and Vice President are chosen, a political party presenting candidates or electors for such offices on the official election ballot of ten or more States, or (B) in the case of contributions made during any other taxable year of the taxpayer, a political party which met the qualifications described in subparagraph (A) in the last preceding election of a President and Vice President. (4) State and local.-The term "State" means the various States and the District of Columbia; and the term "local" means a political subdivision or party thereof, or two or more political subdivisions or parts thereof, of a State. (5) Newsletter fund contribution.-The term "newsletter fund contribution" means a contribution or gift of money to a fund established and maintained by an individual who holds, has been elected to, or is a candidate for nomination or election to, any Federal, State, or local elective public office for use by such individual exclusively for the preparation and circulation of a newsletter. (d) Cross references. (1) For disallowance of credits to estates and trusts, see section 642(a)(2). (2) For treatment of Indian tribal governments as States and the political subdivisions of Indian tribal governments as political subdivisions of States), see section 7871. (Added Pub. L. 92-178, Title VII, § 701(a), Dec. 10, 1971, 85 Stat. 560, and amended Pub. L. 93-625, §§ 11(a)-(c), (e), 12(a), Jan. 3, 1975, 88 Stat. 2119, 2120; Pub. L. 94-455, Title V, § 503(b)(4), Title XIX, §§ 1901(b)(1)(B), (H)(ii), 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1562, 1790, 1791, 1834; Pub. L. 95-600, Title I, § 113(c), Nov. 6, 1978, 92 Stat. 2778; Pub. L. 97-473, Title II, § 202(b)(1), Jan. 14, 1983, 96 Stat. 2609.) 26 U.S.C. § 84. Transfer of Appreciated Property to Political Organization. (a) General rule. If (1) any person transfers property to a political organization, and (2) the fair market value of such property exceeds its adjusted basis, then for purposes of this chapter the transferor shall be treated as having sold such property to the political organization on the date of the transfer, and the transferor shall be treated as having realized an amount equal to the fair market value of such property on such date. (b) Basis of property. In the case of a transfer of property to a political organization to which subsection (a) applies, the basis of such property in the hands of the political organization shall be the same as it would be in the hands of the transferor, increased by the amount of gain recognized to the transferor by reason of such transfer. (c) Political organization defined. For purposes of this section, the term "political organization" has the meaning given to such term by section 527(e)(1). (Added Pub. L. 92-625, § 13(a)(1), Jan. 3, 1975, 88 Stat. 2120.) 26 U.S.C. § 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 ac crued 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 as amended Oct. 4, 1976, Pub. L. 94-455, Title XXI, § 2104(a), 90 Stat. 1901.) 26 U.S.C. § 276. Certain Indirect Contributions to Political Parties. (a) Disallowance of Deduction. No deduction otherwise allowable under this chapter shall be allowed for any amount paid or incurred for— (1) advertising in a convention program of a political party, or in any other publication if any part of the proceeds of such publication directly or indirectly inures (or is intended to inure) to or for the use of a political party or a political candidate; (2) admission to any dinner or program, if any part of the proceeds of such dinner or program directly or indirectly inures (or is intended to inure) to or for the use of a political party or a political candidate; or (3) admission to an inaugural ball, inaugural gala, inaugural parade, or inaugural concert, or to any similar event which is identified with a political party or a political candidate. (b) Definitions. For purposes of this section (1) Political party. 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, whether incorporated or not, which directly or indirectly accepts contributions (as defined in section 271(b)(2)) or makes expenditures (as defined in section 271(b)(3)) for the purpose of influencing or attempting to influence the selection, nomination, or election of any individual to any Federal, State, or local elective public office, or the election of presidential and vice-presidential electors, whether or not such individual or electors are selected, nominated, or elected. (2) Proceeds inuring to or for the use of political candidates.-Proceeds shall be treated as inuring to or for the use of a political candidate only if (A) such proceeds may be used directly or indirectly for the purpose of furthering his candidacy for selection, nomination, or election to any elective public office, and (B) such proceeds are not received by such candidate in the ordinary course of a trade or business (other than the trade or business of holding elective public office). |