...and now for more of the same "change you can count on"

[PatPatriot]

...if you have any "change" left.

IRS wants to tax cell phone use

Douglas McIntyre
Jun 12th 2009 at 7:00AM
Text SizeAAA

Filed under: Company News

The IRS wants to tax the use of cell phones issued to individuals as a fringe benefit. According to The Wall Street Journal, "The Internal Revenue Service proposed employers assign 25% of an employee's annual phone expenses as a taxable benefit."
It is not a novel idea. Since 1989, the IRS has expected people who use company-issued phones for personal calls to count the value of those calls as income.
The question for the mobile phone industry, particularly companies like RIM (RIMM), which sells its Blackberry primarily for business use, will see any drop off in sales if the IRS is effective in enforcing the rule.
The tax could end up being "regressive," thereby decreasing use of the thing it wishes to tax. That still could bring the IRS revenue, but it may make some people think twice about how and when they use cellphones.
A recession makes for odd notions from the government about how it can raise income to offset deficits. Maybe cell phone use will lower the national debt.
Douglas A. McIntyre is an editor at 24/7 Wall St.

• <LI class=permalink>Permalink <LI class=print>Print thisWith HP wireless printers,
  you could have printed
  this from any room
  in the house.
  Live wirelessly. Print wirelessly
• Email this
• <!-- AddThis Button BEGIN -->Share<!-- AddThis Button END -->
• Comments (1)

<SCRIPT type=text/javascript>adsonar_placementId=1436218;adsonar_pid=986767;adsonar_ps=-1;adsonar_zw=468;adsonar_zh=250;adsonar_jv="ads.tw.adsonar.com";</SCRIPT><SCRIPT language=JavaScript src="http://js.adsonar.com/js/adsonar.js"></SCRIPT><FORM id=qas_frm name=qas_frm action="" method=get target=""><INPUT type=hidden name=ie52_mac_only></FORM><IFRAME id=adsonar_serve743475 name=adsonar_serve743475 marginWidth=0 marginHeight=0 src="http://ads.tw.adsonar.com/adserving/getAds.jsp?previousPlacementIds=&placementId=1436218&pid=986767&ps=-1&zw=468&zh=250&url=http%3A//www.dailyfinance.com/2009/06/12/irs-wants-to-tax-cell-phone-use/print/&v=5&dct=IRS%20wants%20to%20tax%20cell%20phone%20use%20-%20DailyFinance&ref=http%3A//www.dailyfinance.com/2009/06/12/irs-wants-to-tax-cell-phone-use/" frameBorder=0 width=468 scrolling=no height=250></IFRAME>

 

[Willie99]

talk about chasing pennies

What might be an average cell phone bill for an employee that has a company cell phone? 200 per month? that might be high.

So the employee gets $ 600 of income added to his income for tax purposes. The employee and the company both pay additional payroll taxes. The company has additional administrative and compliance expenses.

So we increase income taxes, increase payroll taxes and increase operating fees on individuals and businesses. Yep, that ought to create jobs

Now, for the why the policy is fundamentally wrong.

1) what if the employee has his own cell phone which he uses for personal use?

2) what if he uses the phone 95% for business purposes, and he using it for work all day long. Imagine adding $ 500 per month to this guy's income? out of the fucking blue? because he happens to use his blackberry to survive?

Gotta love brain dead bureaucrats.

 

[brucefan]

Government proposes taxing cell phones as a "fringe benefit"

posted by Donny Ferguson on Jun 12, 2009


"If your family earns less than $250,000 a year, you will not see your taxes increased a single dime. I repeat: not one single dime." - Barack Obama, Feb. 24, 2009
If you take a call from your children on your company cell phone, the IRS now wants its cut.
Under a new proposal from the Internal Revenue Service, the use of employer-issued cell phones will now be federally taxed as a fringe benefit. According to The Wall Street Journal, 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. To avoid the new tax, you must provide the IRS with proof you used personal cell phones, not the company phone, for non-business calls during work hours.
Sort of makes "not one single dime" sound a lot like "read my lips."

http://www.lp.org/blogs/donny-ferguson/government-proposes-taxing-cell-phones-as-a-fringe-benefit

 

[rolltide]

To avoid the new tax, you must provide the IRS with proof you used personal cell phones, not the company phone, for non-business calls during work hours.

simply absurd that you have to PROVE anything to this corrupt government. why would someone need to prove use of a 2nd CELL phone specifically? having a land line at home for personal calls is absolutely what many of us do, instead of having a 2nd cell phone not used during work hours.

 

[barman]

Well come on fellas.

WILLIE99 can testify (at gunpoint) that on my own tax returns for past two years we claimed cell phone expense as a deduction.

But if we're fair, a portion of that cell phone activity had nothing to do with operating my contracting business (the one listed on my 1040).

Oh no! Now I'll have to creatively figure out a way to make up for that lost $40 a year in tax deductions!

No problem.

I'm An Idea Man!

 

[Willie99]

I prepared the return honestly and accurately to the best of my knowledge and belief.

and I'm now donating to President Obama's reelection campaign too.

 

[barman]

Don't Ask, Don't Tell obviously did not originate with the military

And thank goodness for that

(off day here in Clearwater as both my primary mowers gorked out on their transmissions and I won't have 'em back until tomorrow morning).

 

[FearTheRaven]

damn wtf.

next I'll have to put a quarter in to flush the toilet.