June 12, 2009
Companies will get taxed for smartphones
From the WSJ: IRS is going to tax you if you have a company-issued mobile phone (by the way, Peek is not a phone)
By MARTIN VAUGHAN and AMOL SHARMA
The use of company-issued mobile phones could trigger new federal income taxes on millions of Americans as a "fringe benefit."
The Internal Revenue Service proposed employers assign 25% of an employee's annual phone expenses as a taxable benefit. Under that scenario, 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.
The IRS, in a notice issued this week, said employees could avoid tax liability if they showed proof they used personal cellphones for nonbusiness calls during work hours. The agency also could decide on a set number of phone minutes as "minimal personal use" that would be untaxed.
Posted by amol at June 12, 2009 5:59 PM
