No taxes for personal use business cell phone advocated by IRS

The repeal of the law that would tax personal usage of business cell phones is recommended by the U.S. Internal Revenue Service. 

Last week the Internal Revenue Service requested public comments on ways to clarify the law on taxing personal use of business cell phones. Requiring people to prove the use of another cell phone for personal purposes, using a statistical sampling method to measure employees’ personal use of their business cell phones, and others are the ways suggested by IRS to simplify enforcement of the law. 

The clarification that neither businesses nor employees will need to pay taxes on personal use of cell phones was asked by IRS Commissioner Doug Shulman from Congress on Tuesday. Further, he stated that the IRS was not planning to renew the law, but attempting to simplify the rules and eliminate uncertainty for businesses and individuals. 

The IRS’s latest move was welcomed by the CTIA wireless association.