Jun 12, 2009 10:25 pm US/Eastern
IRS Wants To Tax Employees For Work Cell Phones
BOSTON (WBZ) ―
The IRS wants to start taxing employees for personal calls made on work-issued cell phones.
They plan to begin enforcing a 1989 law that has been ignored, which says that personal cell phone calls are fringe benefits. One IRS proposal would tax employees on 25 percent of their cell bill.
WHAT IT MEANS FOR YOU
According to tax experts, if a company pays $1,500 a year for an employee's cell service, the employee would pay $105 in federal income taxes.
Then add in Massachusetts state tax, which is $19.88. And finally, Social Security and Medicare tax would be another $28.69. Add that up to a total of $153.57 that you'd pay in taxes for your work cell phone.
YET ANOTHER TAX SPARKS OUTRAGE
In Boston, people were outraged hearing about this plan.
Alan Cobb said, "It's just one more way the government's trying to get it's claws into you, and it's kind of disgusting."
Ben Hux said, "I think it's kind of slimy. Everyone's trying to penny pinch right now. And to now pay for our minutes on our cell phone it's ridiculous."
The IRS is taking written comments on this proposal up until Sept. 4, 2009.
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