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Who says we need another tax?
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
Comments
By Anonymous | Posted 2:19pm | June 15, 2009
If this moves through, it is only a short time before they realize that the same opportunity exists to tax company-issued laptops and Internet connectivity.
By Anonymous | Posted 9:11am | June 16, 2009
What if the employee has their own cell phone and uses it for personal use?
By ChangeForge | Ken Stewart | Posted 9:48am | June 16, 2009
Judi, I am most certainly not up on all of the laws, but along this same line, Kelly over at TaxGirl wrote an article
I posted some thoughts on the subject and Senator DeMint's office responded.
However I could not include the links due to security policy here. I would be glad to share.
It would seem this is already a law, per Kelly, and one that many would like to see pulled back. I think most have the opinion the personal use is incidental especially since the use allows for employers to reach their associates during off-hours or vacation.
Many corporatations opted to enforce an expense policy for personal mobile phones as opposed to dealing with the reporting hassle. However, I don't think very many are now enforcing this b/c of this law (or proposed law).
Hey, I wouldn't mind handing my BlackBerry back!
Warmest Regards,
Ken Stewart
By Greg Washington | Posted 2:39pm | June 29, 2009
If this happens, I will not utilize a company cell phone. If they want to kill the business market fine go right head. That's just one less thing for me to carry around.
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