Chair’s Message
Our Visit to Congress
By Layne Simmons, CPA
The first time I visited Washington, D.C. was in the summer of 1976, during our country’s Bicentennial celebration. Although I was only a teenager, it was an enormous thrill to visit places that I had read about and seen on television. The Capitol building, the White House, the monuments and the museums all possess a uniqueness about them that leaves you in awe of not only their beauty, but also the history we share. I experienced for a few days much of what the National Mall has to offer during this trip, I felt an enormous sense of pride and gratitude to be an American. It left an indelible impression upon me and a thirst to return. Since then, I’ve been fortunate for reasons of work and pleasure to have returned to Washington, D.C. several times. With every visit, the same feelings I initially experienced return.
The 2007 AICPA Spring Council meeting was held in Washington, D.C. As part of this visit, I, along with the other CPAs from Arizona and every other state, had the opportunity to visit with members of Congress to discuss issues relevant to the profession. The two main areas of focus were the patenting of tax strategies and the profession’s highly successful “360 Degrees of Financial Literacy” initiative.
With regard to tax patents, I think all of us would agree that the practice of patents being issued for tax strategies undermines the integrity, fairness and administration of the tax system and is contrary to sound public policy.
Our talking points with our Congressional delegation and their staff were that patents granted for tax strategies:
• Limit the ability of taxpayers to fully utilize interpretations of tax law intended by Congress.
• May cause some taxpayers to pay more tax than Congress intended and may cause other taxpayers to pay more than others similarly situated.
• Complicate the provision of tax advice by professionals.
• Hinder compliance by taxpayers.
• Mislead taxpayers into believing that a patented strategy is valid under the tax law.
• Preclude tax professionals from challenging the validity of tax strategy patents.
As we discussed these points, we requested our Congressional delegation to support HB 2365, introduced by Rep. Rick Boucher (D-VA), Rep. Bob Goodlatte (R-VA) and Rep. Steve Chabot (R-OH), that provides immunity from patent infringement liability for taxpayers and tax practitioners. Although banning the issuance of tax strategy patents would be preferable, strategically, this bill should be easier to garner support and will allow all taxpayers and practitioners to employ tax strategies without fear of litigation for patent infringement.
In meetings I had with members of our Congressional delegation and in discussions I had with other council members regarding similar meetings they had, our message was well received. It was apparent that most members of Congress were unaware that patents had been issued for tax strategies, and they were supportive pending further investigation of our position. Sharing what the Society is doing with regards to its “360 Degrees of Financial Literacy” initiative helped leave a positive impression that we are actively involved in this important issue. Advocacy efforts by both the AICPA and the ASCPA regarding issues that affect the profession, is a benefit all of us receive.
AZ CPA – July/August 2007
