The IRS Commissioner released this statement last week regarding the taxability of employer provided cell phones. There has been much confusion on this topic. The current law requires that the employee keep records supporting business use and personal use of employer provided cell phones. The employer is then required to include the value of personal use as wages.

These requirements can easily become overwhelming and impractical in this culture. It is good to see the IRS is agreeing that the rule is outdated and simplification is needed. Now it is up to Congress to fix it.