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14
sep

US Senate passes patent reform bill banning tax strategy patents

The Senate approved a patent reform bill containing provisions that eliminate patents on tax strategies

The ban on tax strategy patents has been pushed by the American Institute of CPAs. It has also been championed by Senate Finance Committee Chairman Max Baucus, D-Mont., and senior committee member Chuck Grassley, R-Iowa.

The Baucus-Grassley legislation prevents any individual or firm from patenting tax strategies, which could otherwise subject taxpayers to royalty fees for using the patented strategy when filing their taxes. The bill also stops tax patents from providing windfalls to lawyers and patent holders by preventing them from holding exclusive rights to use loopholes, which could provide some businesses with unfair advantages over their competitors.

Now that both the House and Senate have passed the patent reform bill, it goes to the President for his signature.

source:accountingtoday.com