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Tax E-Alerts

News you can use on tax regulations, court decisions, legislation, and practice management.

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Tax Strategy Patents

Recent court decisions have supported patenting of "business methods," and the Patent and Trademark Office is issuing patents for tax strategies. Some practitioners are concerned that they could find themselves having to check if someone owns tax planning advice that they want to give a client.

 

The AICPA is concerned, as are the IRS and Congress, which held hearings on this difficult issue. The AICPA has studied this issue and communicated our concerns and legislative suggestions to Congress. The AICPA continues to work with Congress in resolving this issue.

 

Legislation and Regulations Addressing Tax Strategy Patents

 

Legislation Addressing Tax Strategy Patents

Various pieces of legislation have been introduced addressing tax strategy patents, including H.R. 1908, H.R. 2365, S. 2369, and S. 681.

 

AICPA Letter in Support of H.R. 1908

 

IRS Proposes Regs Treating Tax Strategy Patents as Reportable Transactions

The IRS has proposed regulations making tax strategy patent transactions reportable transactions and subject to the material advisor list maintenance requirement dropping the material advisor threshold from $50,000 to $250 and from $250,000 to $500.

  

AICPA Comments, Articles, and Updates

 

AICPA Tax Strategy Patent Task Force Roster

 

AICPA Urges Tax Patent Legislation Before Tax Season Starts

In a November 19, 2007, press release, the AICPA Urged the Senate to pass S. 2369 before the upcoming tax season starts.

 

AICPA Congratulates House Leaders on Passing H.R. 1908

In a September 7, 2007, press release, the AICPA lauded House leaders on passing H.R. 1908, which would prohibit tax strategy patents.

 

AICPA Expresses Support for H.R. 1908

In September 6, 2007 comments, the AICPA endorsed the

prohibition on tax strategy patents in House patent reform legislation.

 

AICPA Urges Congress to Address Tax Strategy Patents

In February 28, 2007, comments, the AICPA urged the House and Senate judiciary and tax-writing committees to address legislatively the issues raised by the Patent and Trademark Office's issuing of tax strategy patents. Learn More>>

 

AICPA Comments on Regs Treating Tax Strategy Patents as Reportable Transactions

On January 23, 2007, the AICPA commented on proposed regs that would treat tax strategy patents as reportable transactions. Learn More>>

 

AICPA Comments on Proposed Reportable Transaction Regulations
In March 2, 2007, comments the AICPA expresses concern about the how best to acheive the appropriate between transparency and taxpayer burden in the reportable transaction regs. Learn More>>

 

AICPA Position on Tax Strategy Patents (one-page summary)

 

The Tax Adviser August 2007 Article on AICPA Position on Patents for Tax Strategies

 

The Tax Adviser and Tax Insider May 2007 Articles on AICPA Position on Patents for Tax Strategies

 

AICPA Criticizes Tax Patents (Journal of Accountancy, May 2007)

 

AICPA Tax Section Newsletter article on tax strategy patent issues

 

Background on Formation of AIPCA Tax Strategy Patent Task Force

Update on Tax Strategy Patents

 

Please Send Us Your Feedback on Patent Infringement Warning Letters

 

Other Comments/Reports

 

IRS National Taxpayer Advocate 2007 Recommendation to Ban Tax Strategy Patents

 

Congressional Research Service Report on Tax Strategy Patents

 

Real Estate Roundtable Comments on Tax Strategy Patents

 

American College of Trust and Estate Counsel Comments on Patentability of Tax Planning Methods

 

National Society of Accountants Urges Senate to Ban Tax Strategy Patents

 

American Association of Attorney-CPAs Comment on Tax Strategy Patents

 

Texas State Bar Supports H.R. 1908

 

Texas State Bar Tax Section Federal Legislative Proposal on Tax Strategy Patents

 

State Bar of Colorado Section of Taxation Federal Legislative Proposal on Tax Strategy Patents

 

California State Bar Taxation Section Comments on Tax Patents

 

Florida State Bar Tax Section Comments on Tax Strategy Patents

 

Montana State Bar Comments on Tax Strategy Patents

 

ABA Comments on Treating Tax Strategy Patents as Reportable Transactions

 

California Society of CPAs Opposes Tax Strategy Patents

 

Virginia Society of CPAs comments on tax strategy patents

JCT Report on Patenting of Tax Advice

NYSBA Report on Patentability of Tax Advice and Tax Strategies

 

Patent & Trademark Office Links

 

Directions for Searching PTO site

 

How to Search for Patent Assignment Information

 

Searching for Patents Using Key Words

 

PTO List of Granted/Issues Tax Strategy Patents

 

PTO List of Pre-Grant Tax Strategy Patent Applications

 

PTO List of Patents Classified as 705/36T for Tax Strategies

 

Specific Tax Strategy Patents

 

Stock Option GRAT (SOGRAT) Patent

 

Final Consent Judgment in WTG Rowe (SOGRAT)

 

CRT Business Use Patent

 

Patent on Using Tax-Deferred Variable Annuities in Pre-Need Funeral Contracts and CRTs

 

Roth IRA Patent

 

CRT-Business Yield Enhancement Trust Patent

 

Multistate Analysis Patent (Lazear)

 

EITC Analysis Patent

 

1031-1033 Combined Patent

 

Section 1031 Deedshare Patent

 

Patent on Hedging Deferred Compensation Plan Liabilities

 

UBIT Patent

 

Foreign Entity Tax Patent

 

Comiskey PTO Supplemental Brief

 

Articles and Other Information

 

Article on Tax Strategy Patents

 

Other Tax Patent Strategy Resources

Links to Information on Tax Strategy Patents

USC Paper on Responding to Tax Strategy Patents

 

AICPA Discussion Forum

You are welcome to add your thoughts on this subject by logging on to the AICPA Tax Forum, select “Tax Legislation and Policy,” then you will see the link to the Tax Strategy Patents Discussion.