2 CFR §200.426
Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
Bad debts (debts determined to be uncollectable), including losses (whether actual or estimated) arising from uncollectable accounts and other claims, are unallowable. Related collection costs, and related legal costs, arising from such debts are also unallowable. See § 200.428.