Obama signs law banning tax strategy patents

Obama signs law banning tax strategy patents
President Obama made the lives of advisers, accountants and taxpayers easier today by removing the burden of having to get permission to use trademarked tax strategies.
SEP 15, 2011
If you have a clever idea for helping a client lower his or her tax bill, you no longer have to worry about whether you are violating another adviser's copyright. A measure signed into law today by President Barack Obama prohibits tax-strategy patents. In an event in Virginia, Mr. Obama touted the potential economic benefits of the American Invents Act, asserting that it would help entrepreneurs and businesses capitalize more quickly on their ideas. For advisers, though, the biggest benefit of the bill could be a headache that it eases. “No one should be granted a monopoly over a form of compliance with the federal tax code, and no taxpayer should be subject to paying royalties or defending themselves in lawsuits simply for using a legal way to comply with the tax code,” Dan Barry, chief lobbyist for the Financial Planning Association, wrote in a letter to senators last week, shortly before the Senate approved the legislation. Prior to patent reform, advisers had to receive permission from a copyright holder before using a trademarked tax strategy, such as certain types of loopholes. Sponsors of the bill said that it would ensure more ways to pay taxes legally, make the tax code fairer and increase compliance. “Tax strategy patents are on the rise,” Sen. Charles Grassley, R-Iowa, ranking member of the Senate Judiciary Committee, said in a statement last week. “More and more legal tax strategies are unavailable or more expensive for more and more taxpayers.” Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, said in the same statement: “Unfair patents can give a small number of people a stranglehold on tax strategies that should be open to anyone. This bill will bring fairness to the system, and it will deter the use of tax shelters to evade the responsibility we all share.”

Latest News

RIA dealmaking accelerates as three firms hit AUM milestones
RIA dealmaking accelerates as three firms hit AUM milestones

Wealth Consulting Group, Coastline and Maridea report fresh capital, acquisitions and asset growth as advisor M&A keeps climbing

VastAdvisor closes $1 million SAFE round from advisor-side backers
VastAdvisor closes $1 million SAFE round from advisor-side backers

Carson Group's Dani Fava, Jason Pereira of Woodgate Financial, and Sally George of Convergency Partners led the raise as the growth-tech startup builds out its AI platform and leadership bench.

Wells Fargo adds three advisor practices as recruiting rebound continues
Wells Fargo adds three advisor practices as recruiting rebound continues

New teams from William Blair, Ameriprise and UBS bring more than $560 million in combined client assets to the firm's employee and independent channels.

UBS will pay advisors 'handsomely' for banking starting next year
UBS will pay advisors 'handsomely' for banking starting next year

Regulators this year approved UBS Bank USA’s conversion to a nationally chartered bank.

SEC accuses Tricolor executives of hiding $800 million collateral hole
SEC accuses Tricolor executives of hiding $800 million collateral hole

How a subprime lender’s car-loan bonds allegedly unraveled before bankruptcy.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income