The IRS has backed off the idea of taxing us on cell phones owned by our employers! The employer owned cell phones were “listed property” as part of a tax law put in place in 1989 when cell phones were a luxury item. The law required that the employees document their calls and could be subject to taxation if less than 25% of the calls made were not business related.
IRS giving cell phone users a break
The antiquated tax law is opposed by CTIA-The Wireless Association. Supporting the revision of the law, Senators John Kerry (D-MA) and John Ensign (R-NV) and Representatives Sam Johnson (R-TX) and Earl Pomeroy (D-ND) have sponsored the MOBILE Act (S. 144/H.R. 690) to address the issue. This Act amends the Internal Revenue Code to remove certain limitations on the tax deduction for employee use of cellular telephones.
It’s about time some of our laws were updated! Most of the complicated tax laws are really confusing and not very taxpayer friendly. This law seems not only outdated, but designed to be cumbersome to qualify for. Get rid of it!
