IRS Reviews Deductions for Donated Patents

Law360, New York (October 12, 2003, 12:00 AM EDT) -- The Internal Revenue Service is scrutinizing corporate tax deductions for potentially overvalued patent donations, the Wall Street Journal reported, citing agency officials.

The agency is making patent donations a high priority and has already rejected tens of millions of dollars of deductions, according to the newspaper.

Patent donations is considered a shady area because little disclosure is required to explain the deductions. Companies typically provide a lump-sum dollar amount for patents donated, along with a brief description. In its investigation, the IRS is asking companies to...
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