IRS to Refund $15 Billion of Telephone Taxes to Consumers

TaxProf Blog reports:

The Treasury Department and IRS announced this morning that after losing in five circuit courts of appeals, the Government is throwing in the towel and will no longer seek to enforce the 3% excise tax on long-distance telephone calls enacted during the Spanish-American War of 1898 as a "luxury" tax on wealthy Americans who owned telephones. The IRS will will issue $15 billion in refunds to consumers for long-distance telephone service taxes paid over the past three years

It's amazing that the government can define a "temporary tax" lasting over 100 years.That's the government for you.