IRS Proposes to Regulate Users of Patented Tax Strategies

My colleagues Joan Roll and Tim Leska recently published an article summarizing the IRS’ proposed rules relating to transactions that use patented tax strategies.  Implications of the proposed rules include:

[E]ngaging in a patented tax strategy will subject [the taxpayer] to the disclosure requirements if and when these regulations become final.  [Also,] taxpayers who are patent holders or their agents also should recognize that they could be treated as material advisors, and therefore subject to disclosure and list maintenance obligations.

Although tax strategy patents are relatively rare, anyone currently applying for (or considering applying for) such a patent should consider the potential effects of the proposed rules.  The full article summarizing the rule is available on the Pepper Hamilton website by clicking here.

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