Grant Thornton urges IRS to delay patenting regulations

Grant Thornton LLP believes that patenting tax advice or tax strategies should be prohibited by legislation and urges the Internal Revenue Service and the U.S. Department of Treasury to delay finalizing the proposed regulations while Congress considers an appropriate legislative solution.

Tax advice and tax strategies are rooted in public law. Granting a patent on such strategies and advice allows the patent holder to control or charge another taxpayer for applying law enacted for the potential benefit of every taxpayer. This is unfair and should not be allowed, states Grant Thornton in a company news release.

Grant Thornton goes on to say that attempts to regulate the use of tax patents by requiring additional disclosure from taxpayers who may or may not understand they are employing patented advice does not directly address this unfairness. It will introduce inefficiencies, uncertainties and considerable taxpayer burdens into the tax compliance process. The ability to achieve a tax patent also may have the undesirable consequence of fostering an environment where the prospect of owning a tax patent leads to the development of overly aggressive, abusive tax-avoidance strategies. The IRS and Treasury should be applauded for attempting to address the problems created by allowing tax advice to be patented through the reportable transaction disclosure regime. But if increased taxpayer disclosure is the best solution available through regulation, then the necessity for a more direct legislative solution is clear.

Grant Thornton LLP has submitted a comment letter to the IRS and Treasury detailing its concerns and recommendations on proposed regulations that add a patented transactions category to the list of reportable transactions.

You may like these other stories...

As anyone who's ever been through a divorce can attest, the pain of parting with your spouse isn't just emotional—the fallout from divorce can wreak financial havoc as well long after the dust in the courtroom...
Former DOJ Tax Division head Kathryn Keneally joining DLA Piper in New YorkGlobal law firm DLA Piper announced on Thursday that Kathryn Keneally, the former head of the US Justice Department Tax Division, is joining the firm...
OECD calls for coordinated fight against corporate tax avoidanceDavid Jolly of the New York Times reported that dozens of countries with the most advanced economies have agreed on principles for concrete action to prevent...

Already a member? log in here.

Upcoming CPE Webinars

Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.
Sep 30
This webcast will include discussions of important issues in SSARS No. 19 and the current status of proposed changes by the Accounting and Review Services Committee in these statements.
Oct 21
Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience's communication style.
Oct 23
Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.