Friday, June 12, 2009

IRS Weighs Rules for Taxing Private Use of Work Cellphones

Great. Another way to close the tax gap:
The use of company-issued mobile phones could trigger new federal income taxes on millions of Americans as a "fringe benefit," spurring efforts by the wireless industry and others to kill the idea.

The Internal Revenue Service proposed employers assign 25% of an employee's annual phone expenses as a taxable benefit. Under that scenario, a worker in the 28% tax bracket, whose wireless device costs the company $1,500 a year, could see $105 in additional federal income tax.

You are keeping a detailed log of your employer-bought cell phone use, aren't you? Thought so.

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