IRS Reexamines Cell Phone Substantiation Rules

摘要

The Internal Revenue Service recently proposed several new methods to simplify the substantiation procedures for employers who provide their employees with cell phones and similar telecommunications equipment. The current rules were put in place 20 years ago when cellular phones were luxury items and wireless service was expensive. Since then, the documentation requirements have not been updated to take into consideration the technological changes and widespread use of cell phones. The IRS recently proposed several alternative substantiation methods in an attempt to make it easier for businesses to comply with these rules and invited comments on them before these methods are finalized. Additionally, the IRS commissioner urged Congress to change the law so that there are no tax consequences to employers or employees for personal use of work-related devices such as cell phones. Even if Congress does not act on the commissioner's request, simplifying the substantiation procedures should be welcomed news by all businesses that provide cell phonesrnand similar equipment to their employees.