Briefs
House Passes Act Making Tax-Planning Methods Unpatentable
The House of Representatives passed the Patent Reform Act of 2007 (H.R.
1908) on September 7, 2007. Essentially, the Act renders tax-planning
methods unpatentable. A 1998 Federal Appeals decision, State Street Bank &
Trust Company v. Signature Financial Group, Inc., 149 F.3d 1368 (Fed. Cir.
1998), initially permitted protection for “business methods and processes,”
including tax strategies covering estate and gift taxes, charitable giving,
pension planning, etc. Some 51 patents have been granted so far, and over 80
applications are currently pending. However, there has been an increased
outcry recently among tax professionals who believe that providing patent
protection in the tax-planning field is not in the public’s best interest. A
co-sponsor of the bill has stated that such “patents limit the ability of
taxpayers, and the tax professionals they employ, to read the tax laws and
find the most efficient means of lessening or avoiding tax liability.”
This newsletter is provided by
Somerset for our clients and other interested persons upon request.
Since technical information is presented in generalized fashion, no
final conclusion on these topics should be made without further review.
For additional information on the issues discussed, please contact
Steve Riddle,
Tom
Thieme,
Rex Collins or
Doug
Ayres
of our
Litigation & Valuation Team.
This document is not intended or written to be used, and cannot be used,
for the purpose of avoiding tax penalties that may be imposed on the
taxpayer.
Somerset CPAs,
P.C.
3925 River Crossing Parkway, Third Floor
Indianapolis, Indiana 46240
317.472.2200 • 800.469.7206 • FAX 317.208.1200
www.somersetcpas.com
