Cell-Phone Record-Keeping Relief

Since 1989, employers and employees have been required to keep a log of business and personal use on employer-provided mobile communication devices to substantiate costs that are allowable as business expenses. Cell phone and other mobile communication plans today provide free minutes, and in many cases unlimited calling, making it extremely difficult to separate business from personal use. The realities of mobile communication devices no longer justify the administrative burden caused by the record-keeping requirement. The provision in the tax law should be repealed.

Current Status
Legislation ( H.R.5450) to repeal record-keeping requirements for employer-provided cell phones and other mobile communications devices were introduced by Representatives Sam Johnson (R-TX) and Earl Pomeroy (D-ND) on February 14, followed by a companion bill, S.2668, introduced on February 26 by Senator John Kerry (D-MA) and Senator John Ensign (R-NV). A version of the bill was adopted by the House of Representatives April 15 as a part of the Taxpayer Assistance and Simplification Act ( H.R.5719). Failure to complete an employee-use log has been raised during IRS audits of charities. The Taxpayer Assistance and Simplification Act would also repeal the IRS’s authority to employ private debt collection services, a provision that could prevent its passage in the Senate, where it has been referred to the Finance Committee.  

Independent Sector has sent letters to Representatives Johnson and Pomeroy in support of H.R.5450 and to Senators Kerry and Ensign supporting S.2668, the Modernize Our Bookkeeping in the Law for Employee's Cell Phone Act of 2008.

Last Updated: May 15, 2008