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The US Revenue Service has decided to trash a controversial tax on personal use of employer provided devices such as WM Phones. The law, which was introduced in 1989 was meant to be a tax benefit for employers. Last week the IRS asked for ways to better enforce the law, which caused confusion when differentiating between private and business calls. Doug Shulman, the commissioner t the IRS was quoted as saying that the tax law was
“burdensome, poorly understood by taxpayers, and difficult for the IRS to to administer consistently. There will be no tax consequence to employers or employees for personal use of work-related devices such as cell phones provided by employers. The passage of time, advances in technology, and the nature of communication in the modern workplace have rendered the law obsolete.”
Accountants are cracking champagne bottles right now.
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