In the wonderful world of fixed assets, there are some assets that are more fixed than others. No, I’m not talking about huge machines; rather, I’m talking about listed equipment. These are items that Congress has decided must always be delineated on tax returns. Paperwork requirements are stricter for listed equipment. Cellphones were listed equipment.
Back in 2009, the IRS attempted to enforce the law. This meant that if Acme, Inc. gave Joe Employee a cellphone, Joe’s personal use was income, taxed just like the personal use of an automobile. The public wasn’t happy, and Congress included a repeal of cellphones being listed equipment in a law passed in 2010.
Yesterday, the IRS finally issued guidelines that state that if an employer provides an employee a cellular phone for “noncompensatory business purposes” (that is, to do work), it will be an “excludible” (from income) fringe benefit.
Tags: CellPhones