Skip to Content

New to the Mac? Check out TUAW's Mac 101

Call failed: IRS supports repeal of un-enforced cell phone law

More
Text SizeAAA

Filed under: Tax, Technology

On Monday, I went on the Doug Stephan Show to express my outrage over a new plan by the IRS to start taxing employer-provided cell phones as a fringe benefit. Doug and I enjoyed a fun session of venting about greedy bureaucrats, and I explained why the idea made no sense in a post on WalletPOP.

Now the IRS and the Treasury Department have reversed course a week after the initial announcement, and are instead asking to repeal the widely-ignored law that requires employer-provided cell phone minutes used for personal calls to be taxed.

"The current law, which has been on the books for many years, is burdensome, poorly understood by taxpayers, and difficult for the IRS to administer consistently," IRS Commissioner Doug Shulman said in a statement. "The passage of time, advances in technology, and the nature of communication in the modern workplace have rendered this law obsolete."

Actually what made it obsolete was the fact that it was widely ignored -- which was the whole reason your plan to start enforcing it made headlines, Mr. Shulman.

To recap: The IRS spent countless hours -- and in all probability, millions of taxpayer dollars -- discussing ways to enforce this law that is ignored. Now the IRS has decided that it's right that the law is ignored, but apparently that isn't good enough: Now it wants the Congress to spend hours to repeal a law that is already ignored.

Couldn't a lot of time have been saved by just continuing to ignore the law? What exactly was the problem? Why did this need to become an issue?
Subscribe to Walletpop

Featured Sponsor

What are the Next Hot-Spots in the Luxury Resort Scene?
Luxist Awards asked three of our Expert Panelists, all veterans of the travel industry, about the ...
The Luxist Awards for Best Accessories
Do you know of a magnificent jewelry line with pieces that are to die for? Which is the finest ...

Featured Sponsor

Tax Calculators

Get a quick and easy estimate of your tax savings.

Beth Pinsker
Beth Pinsker Filed under: Black Friday

Black Friday Live Blog: What's your doorbuster of choice?

This is the home of our Black Friday LiveBlog, where our correspondents from across the country will be reporting in on the action, the mayhem and the bargaineering. For the latest news up until the ...
Joshua Dorkin
Joshua Dorkin Filed under: Home, Real Estate, Mortgages

Got that sinking feeling? 1 in 4 mortgages now underwater

Is America the next Atlantis? It isn't as absurd as it sounds considering the rate at which new homeowners are finding themselves with property worth less than the mortgage financing it. ...
Lita Epstein
Lita Epstein Filed under: Banks, Credit, Debt, Fraud, Recession, Credit cards

Five words to never to say to your lender

Getting a loan can be a difficult task in this economic environment. Many lenders won't even consider an application for a mortgage unless your credit score is above 740. Others will consider an ...
Marlene Alexander
Marlene Alexander Filed under: Saving Money, Shopping, Charity, Black Friday

On Friday, pink is the new black

If you want your Christmas shopping dollars to go further and support a great cause, then the Pink Friday charity fundraiser is the answer. Systemax Inc., whose companies include CompUSA, Tiger ...

Headlines from WalletPop Partners