News about Internal Revenue Service’s plan to levy a tax on cell phones provided by the employers is making rounds within the Wireless circles. Such cell phones would now be available under the fringe benefit plan.
According to IRS, the proposed plan would now require that you to declare up to 25% of your yearly cell phone bills under tax benefits. I feel that many employees could avert this by proving that they used their personal cell phones for calls that were not related to work during the working hours. A fellow tax collector nodded in agreement with my remark.
I feel this might increase your tax burden by a slight amount but an excess burden is an excess burden, there is no debating that. Global marketing survey company, JD Power and Associates, an average cell phone bill per month comes to $73.
