Business Use of Employer-provided Cell Phone – an update

Written by Reed Tinsley | January 13, 2010

An employee with an employer-provided cell phone receives a nontaxable working condition fringe benefit to the extent he or she uses the phone for business purposes, and the cell phone cost is a deductible business expense for the employer if the substantiation requirements of IRC Sec. 274(d) are met. On 6/5/09, the IRS requested public comments on several proposals to simplify the procedures for substantiating an employee's business use of employer-provided cell phones. But according to a 1/11/10 article on www.webcpa.com , IRS Commissioner Doug Shulman has "decided against coming up with rules on the taxation of employer-provided cell phones and said the IRS would instead wait for Congressional legislation."

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.

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