IRS Considers Taxing Personal Use of Work Cell Phones as ‘Fringe Benefit’

WASHINGTON — The IRS is weighing a proposal to deem one-quarter of employees’ use of work cell phones as personal use and therefore subject to tax as a fringe benefit.

The proposal is one of several options the IRS put forward this week on the tax treatment of employer-provided cell phones. Current law already requires that the value of those cell phone services be included in a worker’s gross income, unless the employee keeps detailed records showing that the cell phone is used for work only — an idea cell phone trade groups are objecting to.

So who decides this?  This is one of the dangers of giving so much power to an agency like the IRS.  They can decide to change the rules and up your taxes at any time without congressional approval.  They can in effect, raise your taxes with the stroke of a pen.

This is so rediculous.  I’m required to have a cell phone, so my company provides it.  It’s very basic service, voice only, but I do make personal calls on it.  They have unlimited voice so why not?  With the Obamanation in charge, they feel they can tax anything they want.  He’s all about taxing those of us who are actually generating income.