IRS Seeks to Repeal Cell Phone Tax Law
Here's how it would have worked...
For those of you agents who are on employee plans, IF the IRS could have gotten away with it. They would have taxed you not for what you actually pay, but for what the 'fair market value' of your price plan is.
For instance, I am on a VZW agent demo line. I pay $15 a month for 1500 minutes, unlimited txt, 300 pix, free ringback tones, and 50% off all my data. I change devices and features all the time, but my bill usually runs about $30, and after taxes I pay about $35 a month, so $5 in taxes.
Now a comparable Verizon plan would be $99.99 for 1350 minutes and unlimited txt, $.99 for RBT, $44.99 for blackberry (never mind that I could get away with the $29.99 plan), $10 for VZNavigator, and $15 for VCAST W/Rhapsody. That's a total of $1...
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For instance, I am on a VZW agent demo line. I pay $15 a month for 1500 minutes, unlimited txt, 300 pix, free ringback tones, and 50% off all my data. I change devices and features all the time, but my bill usually runs about $30, and after taxes I pay about $35 a month, so $5 in taxes.
Now a comparable Verizon plan would be $99.99 for 1350 minutes and unlimited txt, $.99 for RBT, $44.99 for blackberry (never mind that I could get away with the $29.99 plan), $10 for VZNavigator, and $15 for VCAST W/Rhapsody. That's a total of $1...
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Also, let's say your boss has an unlimited voice and data plan with a carrier that allows additional lines to be added at $9.99 and he adds you on as a secondary. Even if you only talk and don't use your phone for anything else, the IRS could tax you at Verizon's completely unlimited plan, which runs $140. And remember they will tax that $140 as income, so you have to pay taxes for income on money you didn't even make with money that has already been taxed.
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