Workshop: Executive Compensation Audits—What Is the IRS Looking At?

May 19, 2009

Ideas on Whether Cell Phones Are Taxable? Give IRS a Call

IRS is hurting on the cell phone issue, too. At Michael O’Toole’s May 19 session “Executive Compensation Audits—What Is the IRS Looking At?” IRS’s Anita Bartels said that IRS is “hamstrung” in the area of cell phones, PDAs, and the like, and is looking for a solution, along with Congress.

“This is impractical--can’t IRS make it easier to comply?” asked an attendee.

Bartels said Congress asked the same question and was “incredulous” about what companies and their employees must do in terms of sampling and recordkeeping regarding personal and business use of such devices. IRS is aware of the problem and seeking answers. So far, no congressionals measures have been successful.