Tax patent

[3] In September 2011, President Barack Obama signed the Leahy-Smith America Invents Act passed by the U.S. Congress that effectively prohibits the granting of tax patents in general.

This patent issued in 1992 and covers, among other things, a computerized administration system for tax advantaged funding of health care programs for retirees.

[10] Similar to the ban passed by the U.S. House of Representatives, this regulation includes an exemption for patents on software for calculating taxes.

There is some concern in the financial community that complying with these regulations will increase the chances of a tax patent licensee being audited by the IRS and that this, in turn, will decrease the value of tax patents in general.

[11] These regulations have, however, been strongly supported by the Section of Taxation of the American Bar Association.