Posted on Nov 15, 2011
Previously, the “Small Business Jobs Act of 2010” eliminated strict substantiation requirements for business use of employer-provided cell phones. Now the IRS has issued new guidance on the tax treatment for employees.
The IRS explains that the value of cell phones, where use may be both business and personal, can be excluded from an employee’s income if there are substantial business reasons for the arrangement. Substantial reasons include requiring the employee to be available at all times for client contact or for work-related emergencies.