The use of company-issued mobile phones could trigger new federal income taxes on millions of Americans as a “fringe benefit.”
The Internal Revenue Service proposed employers assign 25% of an employee’s annual phone expenses as a taxable benefit. Under that scenario, a worker in the 28% tax bracket, whose wireless device costs the company $1,500 a year, could see $105 in additional federal income tax.
The IRS, in a notice issued this week, said employees could avoid tax liability if they showed proof they used personal cellphones for nonbusiness calls during work hours. The agency also could decide on a …
via Tax Man’s Target: The Mobile Phone – WSJ.com.
