IRS Asks Congress to Change the Law on Cell Phones

Cell phones provided to employees may soon be a tax-free transaction, if the IRS gets it's way. Doug Shulman, the Commissioner of the IRS, is urging Congress "to make clear that there will be no tax consequence to employers or employees for personal use of work-related devices such as cell phones provided by employers." This statement came just eight days after the IRS asked for public comment on how to simplify record keeping relating to the personal use of mobile phones. Under current tax laws, cell phone use must be allocated between personal and business use. Any personal use of a cell phone service paid for by the employer is considered taxable income to the employee. "Because it is up to Congress to set the laws that the IRS must follow and enforce," explains AccountingWeb, we'll have to see if Congress changes this particular law.

More information about: deducting cell phone service and listed property.