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IRS Reverses Course On Cell Phone Tax, Asks Congress For Repeal

Kelly Phillips ErbJune 16, 2009May 17, 2020

Just a few days ago, IRS Commissioner Doug Shulman asked for public feedback on proposals to clarify a 1989 law regarding the taxation of cell phones. Apparently, he got some. Earlier today, Shulman announced that he, together with Treasury Secretary Geithner, has asked Congress to repeal the tax altogether.

(Remember, Congress makes the tax laws, not the IRS.)

Shulman is in luck since there are bipartisan bills in both the House and Senate to “repeal” the tax by way of eliminating cell phones as listed property under Section 280F. The bill in the Senate (S.144) has been introduced by Sen. John Kerry (D-MA) and has 45 co-sponsors. The bill in the House (H.R. 690) has been introduced by Sen. Sam Johnson (R-TX) and has 33 co-sponsors. Both bills have been relegated to committee. Senators Kerry and Ensign introduced a similar bill in 2008 that did not pass.

So, the ball is really in your court now, taxpayers. The IRS has heard you loud and clear. Make sure that your representatives do, too. To voice your thoughts on these bills, contact your Congressional officials. You can find information about your Senators here and your Representative here.

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Kelly Phillips Erb
Kelly Phillips Erb is a tax attorney, tax writer, and podcaster.
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cell phone, cell phone tax, Doug Shulman, IRS

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5 thoughts on “IRS Reverses Course On Cell Phone Tax, Asks Congress For Repeal”

  1. Jr Deputy Accountant says:
    June 16, 2009 at 6:46 pm

    Did they even have cell phones in 1989? 😉

    Reply
    1. Kelly says:
      June 16, 2009 at 7:02 pm

      Sure! Don’t you remember Michael Douglas’ giant phone in the movie, “Wall Street”? Here’s the trailer – phone is near the end: http://www.youtube.com/watch?v=FCctqbRrsBQ

      Reply
  2. G. T. Nowell says:
    June 17, 2009 at 5:45 am

    You have a bad link to in the sentence “You can find information about your Senators here and your Representative here.” The Representative link opens and then goes blank and the screen remains brown.

    Reply
    1. Kelly says:
      June 17, 2009 at 6:03 am

      That’s quite the trick! Thanks for the heads up, I’ll check it out.

      Updated: Hmm. They both work for me – anyone else having that problem?

      Reply
  3. Melody says:
    June 17, 2009 at 3:07 pm

    Worked for me.

    Reply

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