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IRS Seeks to Repeal Cell Phone Tax Law

Article Comments  10  

Jun 17, 2009, 8:04 AM   by Eric M. Zeman   @zeman_e

Last week, the Internal Revenue Service sought pubic comments on the idea of taxing personal use of cell phones that are provided by employers. Due to the highly negative response from both employees and business owners, the IRS has now changed its mind and decided to repeal the tax altogether. IRS Commissioner Doug Shulman said, "The passage of time, advances in technology, and the nature of communication in the modern workplace have rendered this law obsolete." Businesses and employees alike believed that sorting out business use versus personal use on cell phone bills would be overly burdensome to all involved. The IRS is recommending that congress repeal the law.

Yahoo / IDG News Service »



This forum is closed.

This forum is closed.


Jun 18, 2009, 11:56 AM

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...
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 ...

Jun 17, 2009, 6:58 PM

Pubic comments? LMAO!!

"Last week, the Internal Revenue Service sought --pubic comments-- on the idea of taxing personal use of cell phones that are provided by employers"

Pubic comments!!!! LOL

Jun 17, 2009, 3:31 PM

Clip doesn't say enough - THIS DOES

Check out the real story behind the proposal. Our staff works with the industry so your opinion matters.

http://www.anythingformycell.com/blog/node/32 »

Jun 17, 2009, 2:55 PM


The IRS did not "seek public opinion" on this law, they just decided to re-enforce a law that was made in 1989. Then they heard a huuuuuuuge backlash and decided that it would probably be overthrown in congress anyway, so let's try to make ourselves look good..... jerks.

This law would really suck for those of us who work for certain companies and have company issued phones, since 25% of the usage would have to be reported as personal income. Lame!

Jun 17, 2009, 9:28 AM

I fought the law...

... and the law was like "o wow wtf were we thinking", and i won.
i fought them with my +2 HTC and it was a stalemate...

Jun 17, 2009, 8:26 AM

My Feet Are Cold

I do believe hell has frozen over.
Notice it's only this one law pertaining to business vs personal use. It isn't "all" cell phone taxes, only the one that taxes you for personal use on a business line.
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