VSCPA Urges Senators to Support Tax Patent Legislation

April 16, 2008

Eliminating the practice of patenting tax strategies is a top priority for the accounting profession this year. In an April 16, 2008, letter to Virginia Sens. John Warner and Jim Webb, the VSCPA urged the lawmakers to co-sponsor S 2369, a bill to ban the issuing of tax strategy patents.

The VSCPA believes that patenting tax planning strategies seriously undermines the ability of taxpayers to pay their taxes and could have severe consequences for CPAs.

In September 2007, the U.S. House of Representatives passed legislation to prohibit patents on tax planning strategies. The language was included in the "Patent Reform Act of 2007" (HR 1908), which passed with a vote of 220 to 175. In a March 14, 2008, letter to Virginia Reps. Rick Boucher and Robert Goodlatte, the VSCPA urged the congressmen to remain "strong and outspoken advocates" against the practice.

The VSCPA has led the nation with its concerns on the patenting of tax advice. Last fall, VSCPA member Maryanne M. McElmurray, CPA, tax director at Brown, Edwards & Company, LLP, in Roanoke, alerted the association about the important issue. On October 6, 2006, the VSCPA issued a statement urging the AICPA and state CPA societies to oppose the practice.

More information on the tax patent issue is available here in the "Legislative & Regulatory" section of the VSCPA Web site. For more information on the VSCPA's position, contact VSCPA Government Affairs Director Erin Collins at (804) 422-6705.