The IRS is changing the way your company views cell phones January 29, 2007Posted by daveintexas in Gardening.
Kinda wonky, but we have a lawyer and a tech-type or two who hang out here, so somewhat interesting.
Company-issued cell phones are now considered “listed property” and therefore a taxable benefit to the employee in a change in the tax code recently implemented. Just like they’ve treated company cars for years.
Your company is probably going to respond something like this – talk the employee into assuming financial responsibility for the account, accept and pay the bill, and they’ll add some amount to your paycheck to offset the tax hit. Benefit to you? You won’t have to provide logs showing evidence of business use. And you are compensated for your personal business expense. And there is now no constraint to you for personal calls.
If a cell phone is shared by, say an on-call support team, those will probably remain company owned and there will be a restriction of “business use only”.
Handling it through expense reports is do-able, but labor intensive.
Years ago I took control of my company phone and account, and now I just pay for it myself. One reason was I like being able to use it for personal calls, and honestly I made more of those.
But mostly because I was tired of that sneaky little prick in accounting going through my phone calls.
You know who you are.