| Two decades ago, it was highly unlikely that you | | | | individual personal calls, as well as a pro rata share of |
| would see someone talking on a cellular telephone. | | | | monthly service charges." |
| Back in those days, most cell phones were "car | | | | Essentially, the IRS is claiming that any personal use |
| phones" or so large you had to have a separate bag | | | | of business-owned cell phones can be considered |
| in which to carry them. Today, you can't walk down | | | | additional taxable income - that's right, they want |
| a sidewalk, through an airport or even down a beach | | | | their cut, too. While these regulations are only in their |
| without seeing someone on a cell phone or Bluetooth | | | | infancy phase at this time and only applicable to |
| device. My, how times have changed. | | | | government agencies, it is only a matter of time |
| Since this cell phone revolution has taken hold of | | | | before these regulations become a requirement for |
| everyday Americans, it's no wonder that businesses | | | | all businesses. |
| are incorporating cell phones, blackberries, etc. into | | | | So, the question is "How on earth do you keep track |
| their IT equipment needs. Customers expect that | | | | of every single call you make?" Well, the good news |
| sales or support contacts are available to answer calls | | | | is that this sort of call tracking has been a |
| anytime, and, to stay competitive, that's what | | | | requirement in Europe for quite some time, so there |
| businesses must do. | | | | are tried and true solutions out there to help. |
| In the wake of, what is essentially, a cultural shift, | | | | In Europe, most companies use software that will |
| there is bound to be some backlash. New rules and | | | | split the bill into business and personal call groups |
| regulations regarding business use of cell phones and | | | | automatically so that the individual or company |
| blackberries are popping up left and right. Specifically, | | | | doesn't have to scour the bill line by line. This allows |
| the IRS has started to implement regulations for | | | | companies to appropriately account for the personal |
| identifying personal versus business usage on | | | | cell phone use, and thereby, adhere to government |
| company cell phones. | | | | regulations, without bogging down their accounting |
| "To be able to exclude the use by an employee from | | | | departments in the process. |
| taxable income from an employer-owned cell phone, | | | | What sales or support representative has time to go |
| the employer must have some method to require | | | | through their bill line by line?? |
| the employee to keep records that distinguish | | | | With these new IRS requirements going into affect in |
| business from personal phone charges. If the | | | | the United States, it's only a matter of time before |
| telephone is used exclusively for business, all use is | | | | all businesses are required to separate and track cell |
| excludable from income (as a working condition fringe | | | | phone usage. And in order to stay efficient, it will be |
| benefit). The amount that represents personal use is | | | | an absolute necessity to find an easy, low cost way |
| included in the wages of the employee. This includes | | | | to track and separate that cell phone usage. |