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Substantiating Cell Phone Use
Posted: June 16th, 2008 @ 12:58pm
Source: The General Ledger Vol. 25, No. 6, June 2008
Substantiating cell phone use. Cell phones are “listed property” under §280 F(d)(4)(A). Business use must be substantiated, and over 50% of use must be for business. If business use exceeds 50% of total use, and the use is substantiated, only the personal use portion is included in the employee’s gross income. Without substantiation, you must include the entire cost of use of the company- provided cell phone in the employee’s gross income. The Wall Street Journal reports that recent documentation of cell phone use is a routine request in big company audits. The IRS will issue guidance on substantiation for cell phones and similar telecom equipment next year. A bill removing cell phones as listed property has passed the House.
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