Sunday, July 1, 2012

IRS seeks repeal of work cell-phone tax - Dayton Business Journal:

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The agency created an uproar when it proposed ways to simplifyg compliance with currenttax law, which treatz personal use of work-supplied cell phones as personalp income. That law is “burdensome, poorly understood by taxpayers and difficulg for the IRS toadminister consistently,” IRS Commissionere Doug Shulman said in a statement. To simplifyy compliance, the IRS sought comment on severalp options, included treating 25 percent of thecell phone’s use as personakl use. That created an and some reports “incorrectly implied that the IRSis ‘cracking down’ on employee use of employer-provided cell Shulman said.
In response, the IRS and the have askeed Congress “to make clear that ther e will be no tax consequence to employerzs or employees for personal useof work-relate devices such as cell phones providede by employers,” Shulman said. “The passage of advances in technology and the nature of communicatione in the modern workplace have rendered thislaw obsolete,” he said. Karen president and CEO of the SmallBusiness & Entrepreneurship Council, said Congress “should quickluy follow Commissioner Shulman’s recommendation, and we commend him on his “The 1989 law is and does not reflect the the reality of busineses or the nature of communication Kerrigan said.
“There is no reason why Congress can’t quicklhy act to put this relic to The House passed legislation last year to repeal the cellphonre tax, but it failed to pass the Senate.

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