Bill banning tax strategy patents introduced--AICPA urges passage.

The AICPA commends the introduction of a bill by Senate Finance Committee leaders, Chairman Senator Max Baucus of Montana and ranking-minority member Senator Chuck Grassley of Iowa, to prohibit patents on tax planning methods. S. 2369, introduced in Nov. 2007, would halt the granting of tax strategy patents by the U.S. Patent and Trademark Office. The AICPA immediately urged the Senate to pass the bill, which is similar to the ban in the broad patent reform bill the House passed earlier in 2007.

"Taxpayers should not have to worry about infringing patents when preparing their tax returns," said Barry Melancon, AICPA president and CEO. "Neither should the tax professionals who prepare millions of tax returns each year. Tax patents are an obstacle to equal application of the tax laws. I urge the Senate to pass S. 2369 as an individual bill or as part of the larger patent reform bill before we go through another tax season," Melancon said. Sixty patents have already been granted and 101 more are pending.

Melancon thanked co-sponsors, Senator Carl Levin of Michigan, Senator Ron Wyden of Oregon, Senator Barack Obama of Illinois and Senator Jeff Bingaman of New Mexico, for their leadership and support. The House passed its provision to prohibit tax strategy patents in Sept. 2007 as part of H.R. 1908, the Patent Reform Act of 2007. Both bills would still allow patents to be granted for tax preparation software products.

Leading the efforts to restrict tax strategy patents are the AICPA's Tax Team and the Congressional Affairs Team.