This AICPA letter supports H.R. 5450, the MOBILE Cell Phone Act of 2008, introduced by Rep. Sam Johnson (R-TX).  The bills would reclassify cell phones and personal digital assistants (PDAs) from listed property (under section 280F(d)(4)(v)) to that of business property.  Such a reclassification would update the tax treatment of cell phones and PDAs by:

·         eliminating the onerous substantiation requirements on taxpayers, including small business owners;

·         removing such taxpayers from being subject to penalties and taxes for not meeting the substantiation requirements under audit;

·         lessening the possibility that a tax-exempt organization may be subject to intermediate sanctions; and

·         reducing the possibility of tax preparers being subject to unnecessary penalties.

According to a 2004 NFIB Small Business Poll, 78% of small-business owners use a cell phone for business purposes. 

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