Cell Phones

Posted by: Carrie Minnich

The IRS has recently released new guidance for cell phones which applies to all tax years after December 31, 2009.

When an employer provides a cell phone to an employee primarily for noncompensatory business reasons, neither the business nor the personal use of the phone results in income to the employee. In addition, no recordkeeping of the usage of the phone is required.

Also, employer reimbursements of employee-provided phones for bona fide business use are not taxable to the employee in most instances.