Employers criticize 1980s IRS cell phone rules

07/28/2008 | Los Angeles Times (tiered subscription model)

Companies say they may stop giving cell phones to employees if the IRS does not change federal tax rules that date back to a time when it cost up to 50 cents a minute to make a call. Some businesses say the IRS has dunned them for hundreds of thousands of dollars because cell phones are still considered expensive fringe benefits rather than the commodity they have become. "A wireless device is not a perk -- it's a critical tool," said Jot Carpenter, vice president of government affairs for CTIA-The Wireless Association®.

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