AICPA on tax patents

Media Advisory: Consumer and Taxpayer Rights Groups Seek Ban on Tax Patents, (Oct. 21, 2009)
2009ARD 203-8

Tax strategy patents: AICPA advisory: Ban on tax patents


AICPA Media Advisory
Consumer and Taxpayer Rights Groups Seek Ban on Tax Patents
A broad coalition of consumer organizations, taxpayer rights groups and financial planners is calling on Congress to ban people from obtaining patents on strategies for complying with U.S. tax law. With the coalition's support, proponents expect it will be more likely that a ban on tax patents will be included in a larger patent reform bill moving through Congress.

Seventeen organizations signed an Oct. 20 letter to congressional leaders in support of a ban on patents, which unfairly seek to control the ability of all Americans to comply with U.S. tax laws. Among the new supporters of a tax patent ban are the Consumer Federation of American, U.S. PIRG, and the Financial Planning Association. The American Institute of Certified Public Accountants has been at the forefront of a two-year effort to ban tax patents.

In the previous Congress, the House of Representatives passed a patent reform bill that included a ban on tax patents, but a similar provision was not included in the Senate's version of the bill, which never came to a floor vote. Members of the House and Senate Judiciary Committees are now working on a new bill that will be acceptable to both chambers. The Senate is expected to act first on patent reform legislation this Congress and the House may accept the Senate bill without amendments so it is important to include a ban on tax patents in the Senate bill.

Tax patents are a growing problem for taxpayers. The Patent and Trademark Office has issued 82 tax strategy patents and 133 applications are pending. Tax patents may limit taxpayers from using tax laws as they were intended by Congress, may cause taxpayers to pay more taxes than necessary and do not guarantee that the underlying strategy is valid.

October 20, 2009