Comments on: IRS Fights Back on Cell Phone Issue

By: Kelly

Kelly — Tue, 16 Jun 2009 19:16:16 +0000

I think that many people would disagree with your characterization of it as a benefit – my dad, for example, who never used his cell phone except for work and hated having to carry it around. Under at least one of these proposals, he would have been responsible for paying tax on a “benefit” that he never even used for personal use.

The problem is that IRS is making assumptions about the use of cell phones that may be inconsistent with their other positions. That leaves them with two choices: ignore the inconsistencies or start taxing other benefits. The WSJ may be joking about the coffee but it would be easy to go down that path of what is a “benefit” at this point…

By: G.T.Nowell

G.T.Nowell — Tue, 16 Jun 2009 18:54:34 +0000

The IRS is opening a can of worms. If they can say that I must pay taxes on a company provided cell phone doest that mean that if I use my personal phone (which I pay for) for company business I can deduct a similar prorated cost as a business deduction from my personal income?

By: Susan

Susan — Tue, 16 Jun 2009 18:50:04 +0000

I don’t see a problem with the IRS’s position. Seriously, the employer provided cell phone IS another work related benefit. How much does the average cellphone plan cost most people? $50 a month. If you have an employer provided cellphone, you’re not likely to pay for a separate, personal cellphone plan. That saves you $50 a month, or $600 a year.

Paying tax on a cellphone plan will cost you, what, $50 a year?

And if you have your own personal cellphone, you really just need to show your cellphone bills to the IRS if they audit you. They’re not going to body check you to see if you have your personal cellphone on you at work.

So enough with the whining.

By: Anonymous

Anonymous — Tue, 16 Jun 2009 18:35:37 +0000

I understand that this debate has been revolving around cell phones because of the IRS’s recent willingness to go after this “fringe benefit” tax. However, I want to also bring into the debate another possible repercussion of the IRS’s crackdown. Cell phones are “listed property.” Because they are “listed property,” there is a presumption that they will be used for personal use (the burden is on the user to show that it was not used for personal use). There are other types of listed property. Laptops, too, would constitute listed property. Thus, there is a presumption that laptops given by an employer to an employee is a personal benefit. To the extent the employee is able to show business use of the laptop, the employee is able to deduct that much in taxes, else the employee should be adding the value of the laptop as taxable income.

If the IRS is crackdown on cellphones, they may follow suit with other forms of listed property. What are employers/employees supposed to do with things like laptops? How does each protect himself/herself from the tax man?

By: Roth & Company, P.C.

Roth & Company, P.C. — Tue, 16 Jun 2009 15:59:48 +0000

Cell phone kerfuffle heats up…

The IRS request for comments on taxing employee cell phones has stirred up a hornets nest. The IRS said they……

By: Cell Mobile Guide » IRS Fights Back on Cell Phone Issue | taxgirl

Cell Mobile Guide » IRS Fights Back on Cell Phone Issue | taxgirl — Tue, 16 Jun 2009 14:12:16 +0000

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