Marianna Dyson Quoted in the Wall Street Journal Regarding Employer-Issued Mobile Phones

"IRS Defends Tax Proposal for Employer-Issued Mobile Phones"
The Wall Street Journal
06.12.09Marianna Dyson was quoted in the Wall Street Journal regarding IRS proposals to enforce a law taxing the personal use of employer-provided cellular telephones. According to the article, if the IRS limits business deductions to 75% of the value of the mobile phones, and deems the rest personal use, the remaining 25% would have to be counted in an employee's gross income--triggering both income tax and payroll tax withholding requirements on the employee's wages. "If they decide 25% is personal use, guess what? It is a wage, and you have to withhold on it," Dyson said. "For IRS to suggest this would have no impact on employees, is a little disingenuous." She added that the IRS Notice does not address how self-employed individuals should handle deducting cellphone expenses. "Right now, self-employed people have to document every single business call. They are driving around with one hand on the wheel and one on the phone and one in the log book," she said.
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