Go Symbol Lookup
Loading...

IRS May Tax Your Work Cell Phone

 Text Size  
Published: Friday, 12 Jun 2009 | 1:14 PM ET
By:

Special to CNBC.com

The government may begin more strict enforcement of an existing rule that classifies employer-provided cellphones as a taxable fringe benefit.

According to a report released Monday by the Internal Revenue Service, the agency is proposing guidelines that would assist employers in calculating what costs are taxable.

Under these guidelines, employees who are able to prove all personal calls made during work hours were done so on a personal phone, can avoid the tax. Employees may be forgiven for "minimal personal use" of employer-provided phones, the report says.

Alternatively, the so-called "Safe Harbor" method would put aside 75 percent of phone charges to "business use." Employees would be taxed on the remaining minutes.

The IRS is requesting public feedback on the plan. Those suggestions may be used to help determine how many minutes of personal calls should be considered "minimal personal use" of employer-provided phones.

 Print
The government may begin taxing employer-provided cell phones, according to a report released Monday by the IRS.

   
Comments

 

More Comments

 
 

Add Comments

 

Your Comments (Up to 1100 characters):

Remaining characters

Your comments have not been posted yet.

Please review your submission to make sure you are comfortable with your entry.

Your Comments: