Employer-Provided Cellphones: Cellphone-Tax Law

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Wireless Group Wants Repeal of Cellphone-Tax Law

CTIA, the wireless association, is throwing its full support behind legislation to do away with a 20-year-old law that taxes personal use of employer-provided cellphones, it said Tuesday in comments to the Internal Revenue Service.

While waiting for Congress to act, CTIA said the IRS should "consider suspending all audit activity on the taxation of the personal use of employer-provided cellphones."

"The alternatives [to legislation] proposed by the IRS are either incomplete or inadequate solutions that would continue to subject employees and employers to onerous call log requirements," CTIA President Steve Largent said.

CTIA counts among its members the country's largest wireless companies -- Verizon Wireless, AT&T Inc., Sprint Nextel Corp., and T-Mobile USA. Verizon Wireless is a joint venture of Verizon Communications Inc. and Vodafone PLC. T-Mobile is a unit of Deutsche Telekom.

The IRS is collecting comments on the cellphone-tax law. In June, IRS Commissioner Doug Shulman asked Congress to repeal it, calling it "obsolete."

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Wireless Group Wants Repeal of Cellphone-Tax Law - WSJ.com