Cell Phone Tax for Personal Use?
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Does anyone have any knowledge about an IRS provision allowing them to tax the personal use of a company cell phone? Is this true? Have any of you had to do this? It was reported to me by a colleague that his employer recently banned all personal use of the company cell phones for this reason. I have heard something to this effect but thought it only pertained to federal/state agencies, etc. Any clarification on this would be much appreciated.
Comments
I won't claim to be a tax expert but I think your colleague is correct. The IRS treats cell phones as "listed property," which has
"implications for depreciation deductions taken by the business and the
computation of net income." (http://www.irs.gov/pub/irs-pdf/p946.pdf)
See this clipping from the IRS website talking about public employers
(e.g. municipalities) (read the whole thing at
http://www.irs.gov/govt/fslg/article/0,,id=167154,00.html).