IRS Eyes Mobile Phones
Get the working capital your business needs from Entrepreneur Lending, powered by CAN Capital. Learn More »If 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.