How the IRS Feels About Employer Provided Cell Phones

IRS Information
The Internal Revenue Service has released guidance aimed at clarifying the tax treatment of mobile phones provided by employers to their employees. The guidance explains a provision of last fall's Small Business Jobs Act of 2010 that removed cell phones from the definition of listed property, a category under tax law that normally requires taxpayers to perform additional recordkeeping. IRS Notice 2011-72, issued in mid-September, provides guidance on the treatment of employer-provided cell phones as an excludible fringe benefit. According to the new guidance from the IRS, when an employer provides an employee with a cell phone primarily for noncompensatory business reasons, the business and personal use of the cell phone is generally nontaxable to the employee. The IRS will not require recordkeeping of business use in order to receive…
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