Having considered the issue for several months, the AICPA has urged Congress to restrict the issuance of patents for tax strategies. The Institute last month sent a paper outlining its concerns about tax strategy patents to the House and Senate Judiciary Committees and the House Ways and Means and Senate Finance Committees.

In its cover letters to the committees, the AICPA wrote, “…Patents granted for tax strategies are contrary to sound public policy because they undermine the integrity, fairness and administrability of the tax system…The conflict with Congressional intent highlights a serious policy reason against allowing patent protection for interpreting the law. Allowing patents on strategies for complying with any law or regulation is not sound public policy because it creates an exclusivity on interpreting the law.”

The AICPA also noted its concern that the “growing number of such patents will interfere with the voluntary tax compliance system,” and said it would like to work with Congress to “develop and enact legislation to restrict the application of this type of patent as soon as possible.”

To help members better understand the issue and its ramifications, a Web page replete with tax patent resources has been created. Among the items online, members will find links to the paper and letters to the tax committees and Judiciary Committees.

http://tax.aicpa.org/Resources/Tax+Patents