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IRS Likely to Loosen the Rules on Employer Provided Cell Phones

February 27th, 2008 · No Comments

Congress is pressuring the IRS to ease the rules which currently require employees to keep detailed records of the business usage of their cell phones. In brief:

The current rules: workers are currently required to document the time and place of calls and the specific business purpose.

What’s changing: given that so many people have plans with unlimited minutes, lawmakers are suggesting that it does not make sense for the IRS to require employers to make their employees keep track of this information. Instead, they claim that cell phones should be treated the same way desk phones and personal computers are treated, meaning that documenting the time, place and business purpose of calls would no longer be necessary.

If the IRS does not change the rules on their own, then Congress is likely to initiate legislation that will do so.



 

Tags: Accounting · Small business

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