A bill designed to help stimulate small businesses has a provision that would remove cell phones from IRS-listed property has been signed by the president. The legislation essentially fixes an arcane tax law that would have forced employers who give employees cellphones to track personal vs. business use.
The bill was originally introduced in 2008, but had not been strongly enforced by the IRS because the agency recognized that with unlimited calling plans, the distinction between personal and business use was moot and that cellphones are not an executive perk. The House and Senate passed the bill earlier this month.
“The president, his administration and Congress clearly understand that employer-provided devices are essential for employees because they offer convenience and improve productivity. It is an arcane rule to require all personal usage to be considered a taxable benefit,” said CTIA President Steve Largent.
Law that requires cellphone use as taxable benefit one step closer to repeal: UPDATED: Obama signs bill
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