IRS Eyes Mobile Phones

Free Book Preview Tax and Legal Playbook

Get game-changing solutions to your small business questions.
min read
cell-phone-tax.jpgIf you assign mobile phones to employees, they might be liable for a quarter of the applicable taxes if new IRS rules under consideration go into effect.

The idea is to take some of the burden off business owners' backs. Already, a notice issued this week allows employers to forgo "minute-by-minute" documentation of employees' company phone use.

"Minute by minute documentation really doesn't make any sense -- we've been hearing all about it, and we said yes it makes no sense," a senior IRS official told Telecommunications Online.

The employee tax-liability rule would assign 25 percent of an employee's phone bill as a "taxable benefit." Of course, if employees are required by your business to stay in touch via company Blackberrys and the like, having to pay the tax wouldn't seem like such a benefit at all.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Entrepreneur Store scours the web for the newest software, gadgets & web services. Explore our giveaways, bundles, "Pay What You Want" deals & more.

Latest on Entrepreneur