January 19, 2010
IRS Commissioner Doug Shulman said last week that the Service is suspending any update of rules for taxing employer-provided cell phones and other mobile devices, and expects Congress to act soon to change the antiquated law.
The 1989 law, written at a time when cell phones were viewed as a luxury perk for corporate executives, added cell phones to the "listed property" rule in the tax code, requiring employers to maintain detailed logs of all employee calls, text messages, and emails. Legislation was introduced last session to remove cell phones from the listed property category, but Congress did not act on the bill.
In a television interview last week on C-SPAN, Shulman said, "Congress had a busy year last year … When they come back, our hope is that the tax-writing committees take this up. In the meantime, we’re not doing anything special or moving forward with any initiatives. Our hope is that there will be legislation to clean this up."
Shulman’s comments prompted a statement from CTIA – The Wireless Association. "CTIA appreciates Commissioner Shulman’s decision to suspend efforts to update the ‘listed property’ rule for employer-provided mobile devices," said CTIA President and CEO Steve Largent. "The existing rule is an anachronism and it can’t be saved simply by giving it a facelift … It is our hope that Congress acts soon to help employers and employees alike by repealing this absurd, outdated rule."
Source: ASAE Public Policy, January 14, 2010
Source: ASAE Public Policy, January 14, 2010
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