Changing IRS Tax on Talk

Just imagine, having to lug a notepad around with you all of the time, writing down all the calls you made on your business cell phone to your  home, or to your kids' school, or to a next-door-neighbor... then checking your work bill every month to add up the cost of those calls, and eventually getting taxed for using that cell phone for those personal calls. A pain, right?
 
Well, that's the law as it stands today. Anyone who is provided a cell phone at work is legally obligated to record personal calls, and you are legally on the hook to pay income taxes on them. A hassle? You bet. But, it could go away if Congress passes legislation it's currently considering.     
 
The LA Times ran a front page story yesterday on the wireless "listed property" issue, and the article clearly explains the out-dated, archaic tax code that requires employees to keep track of "personal" calls made on their "work" wireless phones.  This tax code stems from the early 90's when wireless was an exclusive, corner-office-executive perk.  The wireless market of 2008 is completely different from the wireless market of the early 90s.   Over the last 18 years, intense competition has driven down wireless  prices, and driven up subscribership .  Today, wireless is hardly an "executive privilege" - it's a mainstay of modern American life enjoyed by more than 260 million subscribers. 

Beyond the existing tax policies ignoring the wide-spread adoption of wireless, they also disregard the personal, intimate nature of wireless service.  Because we take our devices with us everywhere, they become the primary connection to our lives - both personal and professional.  According to Harris Interactive, about 25% of Americans say their cellphone is their primary form of communication.  Beyond that, 20% say that wireless is a more personal, direct form of communication than traditional phone service.  Finally, according to M:Metrics, a mobile measurement firm, about 11 million Americans have at least some of their monthly wireless service paid for by their employer. 

 Recognizing the personal nature of this service, and the number of American employers paying for their employees' wireless service, the tax code must be modernized.  Legislation to fix the code has been passed in the House and is pending in the Senate.  The Senate should act now to pass the Mobile Wireless Tax Fairness Act of 2008!