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Who says we need another tax?
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The Internal Revenue Service is considering a new tax, and this one is outrageous. The IRS is weighing the option of taxing personal use of company-provided cell phones, and applying that tax not only to calls but to text messages sent on all mobile devices.
"What?" you scream, "Can they really do that?" Well, yes they can. The IRS could more strictly enforce an existing law allowing cell phones paid for by employers to be viewed as a taxable benefit.
The law was passed in 1989 when cell phones were a luxury item. Today, they are a necessity, and with this increasingly mobile work world we live in, who can avoid frequent calling and text messaging? What's more, who wants to pay a new tax?
The IRS is seeking comments on this idea. It would deem one-quarter of employees' use of work cell phones as personal use and therefore subject to tax, as a fringe benefit. The deadline to submit comments to the IRS is Sept. 4. Take a good look at the proposal and then let your voice be heard. - Judi
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