For Once, IRS Says To Keep Less Detailed Records

by Tim Caskey 7. October 2011 09:21
The IRS has slated some guidelines to assist with the tax treatment of employer-provided mobile phones. The Small Business Jobs Act of 2010, passed last fall, eliminated cell phones from the description of “listed property”. What this meant was that it no longer fell into the category in which taxpayers had to keep detailed records under tax law. The Notice 2011-72 explains that when a phone is given to an employee from his or her employer for work purposes, it is generally nontaxable for both business and personal use. Therefore, it is no longer necessary to keep a record of work use for it to be considered for a tax deduction. Additionally, if an employer requires that an employee use his or her personal cell phone for noncompensatory business purposes, the reimbursement of said usage is considered non-taxable. This does not apply to reimbursements of excessive or unusual expenses, nor does it apply to reimbursements made to substitute a portion of the employee’s regular wages. Further details may be found in Notice 2011-72 at IRS.gov.
Categories: Tax