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Cell phone reimbursement policy
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Cell phone reimbursement policy
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Hi all
I am trying to get info on IRS tax regulation pertaining to reimbursement of personel cell fone usage for business purposes or business provide cell phone. If anyone has any advise on that,
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Forums » Topic Forums » General Forum » Cell phone reimbursement policy
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Cell phone reimbursement policy
posted at 12/29/2010 7:40 AM EST
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Posts: 14
First: 6/8/2010 Last: 4/28/2011 |
Hi all
I am trying to get info on IRS tax regulation pertaining to reimbursement of personel cell fone usage for business purposes or business provide cell phone. If anyone has any advise on that, please let me know. |
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Cell phone reimbursement policy
posted at 12/30/2010 5:59 AM EST
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Posts: 2146
First: 2/15/2006 Last: 9/14/2011 |
"Listed Property
Employers often provide employees with certain electronic and telecommunication equipment for use outside of the employer's premises in the performance of their duties. These items (and other items listed in IRC § 280F) are considered "listed property.â Because the nature of the property lends itself to personal use, strict substantiation requirements are in place. Employees are required to account for business and personal use. IRC § 274(d); IRC § 280F(d)(4); IRC § 132(d) 63 64 Examples include cell phones, automobiles, computers, and recreational equipment. "Listed Property" IRC § 280F(d)(4) ⢠Business use is excludable from the wages of the employee as a working condition fringe benefit. ⢠Personal use is included in the wages of the employee. ⢠If substantiation requirements are not met, all use is included in the wages of the employee. Substantiation Requirements The employee must keep records of business and personal use in order to determine whether the value of any of the use is included in the employeeâs wages. IRC § 274(d) Example: An employer provides an employee with a cell phone and pays the monthly charges. The employer requires the employee to highlight personal calls on the monthly bill. The employer includes the direct charges for personal use and a pro rata share of monthly fees and services in the wages of the employee. The business use is not taxable to the employee. Cell Phones Because they are considered "listed property," cell phones are subject to the special substantiation rules. Employees are required to keep records of business and personal calls. The value of personal use, any use that is not documented as business use, and reimbursement for personal usage should be included as wages to the employee. If records of business and personal use are not kept, the value of all use is included in the wages of the employee." from http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf Sorry about the formatting....often times in a quote there are hidden enter keys that can't be seen until posting and I cant' edit later! |
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Cell phone reimbursement policy
posted at 1/6/2011 7:40 AM EST
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Posts: 14
First: 6/8/2010 Last: 4/28/2011 |
HI Rupert
thank you. This was really helpful. I had seen articles around Oct 2010 following the small business jobs act that mentioned that cell phone was no longer listed property so i was looking for more info. i didnt realize that i had posted on this forum first instead of the legal forum and since i didnt find the posting on the legal forum i reposted it there. thanks again... |
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