Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Law Firm Partnership & Benefits ReportKickerFeaturesTopicsCommercial LawSectionsNewsLJN Newsletters

IRS: Cell Phone Services Provided to Employees Excludible from Income

By Christa Bierma and Debera Salam
November 23, 2011

The IRS has modified its position on the tax treatment of cell phone services and similar telecommunications equipment usage (“cell phones”) that employers provide to employees primarily for noncompensatory business reasons. The value of the use of such cell phones ' a category that an IRS official has recently suggested may include tablet devices ' is now excludible from employees' income as a working condition fringe. In addition, the personal use of such cell phones is also excludible from the employees' income.

As a general matter, gross income includes fringe benefits unless they are specifically excluded. One of these exclusions is any fringe benefit that qualifies as a working condition fringe, meaning any property or services provided to an employee to the extent that, if the employee paid for such property or services, the payment would be allowable to the employee as a business deduction. A deduction is allowed for all the ordinary and necessary expenses paid or incurred during the tax year in carrying on any trade or business.

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Bankruptcy Sales: Finding a Diamond In the Rough Image

There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.

Law Firms are Reducing Redundant Real Estate by Bringing Support Services Back to the Office Image

A trend analysis of the benefits and challenges of bringing back administrative, word processing and billing services to law offices.

Bit Parts Image

Summary Judgment Denied Defendant in Declaratory Action by Producer of To Kill a Mockingbird Broadway Play Seeking Amateur Theatrical Rights

Risks of “Baseball Arbitration” in Resolving Real Estate Disputes Image

“Baseball arbitration” refers to the process used in Major League Baseball in which if an eligible player's representative and the club ownership cannot reach a compensation agreement through negotiation, each party enters a final submission and during a formal hearing each side — player and management — presents its case and then the designated panel of arbitrators chooses one of the salary bids with no other result being allowed. This method has become increasingly popular even beyond the sport of baseball.

Disconnect Between In-House and Outside Counsel Image

'Disconnect Between In-House and Outside Counsel is a continuation of the discussion of client expectations and the disconnect that often occurs. And although the outside attorneys should be pursuing how inside-counsel actually think, inside counsel should make an effort to impart this information without waiting to be asked.