Examining Tax Strategy Patents—An Analysis of Reform Measures

Abstract

Tax strategy patents (TSPs) are currently the center of debate due to their potential to monopolize interpretations of the tax code. Current legislative efforts to calm the debate surrounding tax strategy patents fail to do so. This paper analyzes current legislative reform measures aimed at TSPs. We identify both administrative and legislative problems surrounding TSPs, and argue that legislative reform that completely removes legal methods from patentable subject matter is critically necessary in order to provide equity for all taxpayers. Despite proposed legislation to curb the growth of TSPs, more stringent legislative and administrative reform is necessary in order to provide guidance to taxpayers and to advance tax policy.