Comments on: When the Cell Phone Is the Office Phone, Taxing It Is Wrong http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/ Trusted Insights and Conversations on the Next Wave of Technology Mon, 23 Nov 2009 01:16:23 +0000 http://wordpress.com/ hourly 1 By: McGuire’s Law » Blog Archive » Big Bell Dogma: July 2009 http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-963798 McGuire’s Law » Blog Archive » Big Bell Dogma: July 2009 Sun, 02 Aug 2009 01:53:30 +0000 http://gigaom.com/?p=53991#comment-963798 [...] When the Cell Phone Is the Office Phone, Taxing It Is Wrong [...] [...] When the Cell Phone Is the Office Phone, Taxing It Is Wrong [...]

]]> By: Ken http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-954608 Ken Tue, 23 Jun 2009 01:06:34 +0000 http://gigaom.com/?p=53991#comment-954608 Thanks to new technologies, that carry although voice over 100% IP networks wirelessly, and only pay one flat fee, I would surmise. would require no tax because it's not using the voice side of the network Thanks to new technologies, that carry although voice over 100% IP networks
wirelessly, and only pay one flat fee, I would surmise. would require no tax
because it’s not using the voice side of the network

]]> By: Arun http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-953256 Arun Tue, 16 Jun 2009 18:09:10 +0000 http://gigaom.com/?p=53991#comment-953256 Next, they'll be charging for the "non-work" related websites that you visit from your work computer :) Next, they’ll be charging for the “non-work” related websites that you visit from your work computer :)

]]> By: Kurt http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-953228 Kurt Tue, 16 Jun 2009 15:25:39 +0000 http://gigaom.com/?p=53991#comment-953228 Yes, as for taxes, regulation and spending, we will have change - from bad to much, much worse. Yes, as for taxes, regulation and spending, we will have change – from bad to much, much worse.

]]> By: Obama tax on work cell phones? : ObamaIsDumb.com http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-953003 Obama tax on work cell phones? : ObamaIsDumb.com Mon, 15 Jun 2009 14:44:49 +0000 http://gigaom.com/?p=53991#comment-953003 [...] While I generally dislike taxes, this type of tax would be more regressive than progressive, affecting those that make less money.  As Stacey Higginbotham puts it, “Cell phones are no longer the status symbols of the privilege... [...] [...] While I generally dislike taxes, this type of tax would be more regressive than progressive, affecting those that make less money.  As Stacey Higginbotham puts it, “Cell phones are no longer the status symbols of the privilege… [...]

]]> By: Amit Pbx http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952980 Amit Pbx Mon, 15 Jun 2009 12:28:28 +0000 http://gigaom.com/?p=53991#comment-952980 Phone calls must be free of tax! Over are the days when job and personal life are strictly separated. With the technology and new "movement" of work from home / work at home Phone calls are no longer can be track and say this one is for business and this one is for personal. The IRS know that too! that is why they trying to force that law. It's their last chance to steal money from your pocket before they loose the battle. Phone calls must be free of tax!
Over are the days when job and personal life are strictly separated.

With the technology and new “movement” of work from home / work at home
Phone calls are no longer can be track and say this one is for business and this one is for personal.

The IRS know that too! that is why they trying to force that law.
It’s their last chance to steal money from your pocket before they loose the battle.

]]> By: mygadget http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952671 mygadget Sat, 13 Jun 2009 11:04:04 +0000 http://gigaom.com/?p=53991#comment-952671 are they kidding? what are more tax in the future? are they kidding? what are more tax in the future?

]]> By: Homer Bush http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952606 Homer Bush Sat, 13 Jun 2009 01:48:07 +0000 http://gigaom.com/?p=53991#comment-952606 As George W. Bush made painfully clear. Thankfully the citizens of US voted for change in 2008. As George W. Bush made painfully clear. Thankfully the citizens of US voted for change in 2008.

]]> By: clarkbill http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952600 clarkbill Sat, 13 Jun 2009 01:37:48 +0000 http://gigaom.com/?p=53991#comment-952600 Bryce, your first two sentences don't make much sense in the context of this article. The taxes are on personal calls on company cell phones. The employee would be paying taxes, not the business, so I fail to see how this would affect the cost of doing business. The only cost this increases is the cost to the employee--you and me. If I had to pay for a personal phone and carry my company phone, I'm spending money I'd otherwise not have to. If I'm paying taxes on personal calls on my company cell phone, I'm spending money, and wasting my time tracking these calls and reporting them on my taxes. Either way, the IRS wants to screw Joe Citizen out of more money any way they can to pay for automotive industry and financial sector bailouts. It's an old law based on a way of life that no longer exists. Cell phones, whether the telecom industry wants to admit it or not, have become a commodity in the United States. As stated in the post above, cell phones are no longer a "perk" or status symbol for the corporate elite. They're an everyday part of life in nearly every line of business. The law needs to be changed to reflect changes in the way business is conducted, which itself was changed by the very existence of mobile phones (and mobile computers, but that's a whole different story for a different day--but I'll bet they'll find a way to tax us more on those too). Bryce, your first two sentences don’t make much sense in the context of this article. The taxes are on personal calls on company cell phones. The employee would be paying taxes, not the business, so I fail to see how this would affect the cost of doing business. The only cost this increases is the cost to the employee–you and me. If I had to pay for a personal phone and carry my company phone, I’m spending money I’d otherwise not have to. If I’m paying taxes on personal calls on my company cell phone, I’m spending money, and wasting my time tracking these calls and reporting them on my taxes. Either way, the IRS wants to screw Joe Citizen out of more money any way they can to pay for automotive industry and financial sector bailouts.

It’s an old law based on a way of life that no longer exists. Cell phones, whether the telecom industry wants to admit it or not, have become a commodity in the United States. As stated in the post above, cell phones are no longer a “perk” or status symbol for the corporate elite. They’re an everyday part of life in nearly every line of business. The law needs to be changed to reflect changes in the way business is conducted, which itself was changed by the very existence of mobile phones (and mobile computers, but that’s a whole different story for a different day–but I’ll bet they’ll find a way to tax us more on those too).

]]> By: Bryce http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952573 Bryce Fri, 12 Jun 2009 23:45:51 +0000 http://gigaom.com/?p=53991#comment-952573 here's an update from the WSJ's earlier article. The IRS clarified its position. http://online.wsj.com/article/SB124484293150711035.html#mod=rss_whats_news_us I'm pretty sure they're just sticking their foot further in their mouth ... I struggle with the reasoning for doing so ... here’s an update from the WSJ’s earlier article. The IRS clarified its position.

http://online.wsj.com/article/SB124484293150711035.html#mod=rss_whats_news_us

I’m pretty sure they’re just sticking their foot further in their mouth … I struggle with the reasoning for doing so …

]]> By: IRS wants to tax business mobile phones http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952565 IRS wants to tax business mobile phones Fri, 12 Jun 2009 23:29:59 +0000 http://gigaom.com/?p=53991#comment-952565 [...] IRS deems employer paid mobile phone benefits a “fringe benefit” rather than a business tool. Under the proposed rule, employers would statistically report business and personal phone usage with the actual tax based on the employee’s tax bracket and cost of wireless service. Determination per employee based on statistical employee usage can’t be fair for obvious reasons, but the law is old and the idea for a new rule is bad. The idea does not work. Today, mobile phones are just another necessary business communications tool, and the IRS should treat them as such. [GigaOM] [...] [...] IRS deems employer paid mobile phone benefits a “fringe benefit” rather than a business tool. Under the proposed rule, employers would statistically report business and personal phone usage with the actual tax based on the employee’s tax bracket and cost of wireless service. Determination per employee based on statistical employee usage can’t be fair for obvious reasons, but the law is old and the idea for a new rule is bad. The idea does not work. Today, mobile phones are just another necessary business communications tool, and the IRS should treat them as such. [GigaOM] [...]

]]> By: Kurt http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952537 Kurt Fri, 12 Jun 2009 20:52:20 +0000 http://gigaom.com/?p=53991#comment-952537 Elections have consequences... Elections have consequences…

]]> By: vivek http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952536 vivek Fri, 12 Jun 2009 20:50:29 +0000 http://gigaom.com/?p=53991#comment-952536 So what's next! Will the IRS require employers to pay for/report all those work related phone calls and email/data exchanges that employees perform after work hours, form their company phones! (because in its present form, the law would entirely impact employees, for no fault of theirs; i.e. in most cases)! Fact is with calling plans that are popular with business users today, offer unlimited or very large # of minutes/data. Hence the employer pays a fixed amount, regardless of the employees usage. The real cost to employers is from the work-time spent by employees on personal communications. However, there are far more effective and efficient ways to address what is really a business productivity issue, than the IRS levying and enforcing a new tax for it! So what’s next! Will the IRS require employers to pay for/report all those work related phone calls and email/data exchanges that employees perform after work hours, form their company phones! (because in its present form, the law would entirely impact employees, for no fault of theirs; i.e. in most cases)!

Fact is with calling plans that are popular with business users today, offer unlimited or very large # of minutes/data. Hence the employer pays a fixed amount, regardless of the employees usage. The real cost to employers is from the work-time spent by employees on personal communications. However, there are far more effective and efficient ways to address what is really a business productivity issue, than the IRS levying and enforcing a new tax for it!

]]> By: Parkite http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952529 Parkite Fri, 12 Jun 2009 20:03:46 +0000 http://gigaom.com/?p=53991#comment-952529 What a joke! Maybe if we stopped bailing out private industry we wouldn't need to get this desperate. What a joke! Maybe if we stopped bailing out private industry we wouldn’t need to get this desperate.

]]> By: FN http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952517 FN Fri, 12 Jun 2009 18:34:11 +0000 http://gigaom.com/?p=53991#comment-952517 I wonder if the IRS is going to tax Obama for personal calls on his nifty new Blackberry? I wonder if the IRS is going to tax Obama for personal calls on his nifty new Blackberry?

]]> By: Bryce http://gigaom.com/2009/06/12/when-the-cell-phone-is-the-office-phone-taxing-it-is-wrong/#comment-952513 Bryce Fri, 12 Jun 2009 17:58:12 +0000 http://gigaom.com/?p=53991#comment-952513 Increasing taxes on cell phones raises the cost of doing business yet again. This is yet one more tax that is going to decrease company's profitability (albeit not a huge amount) and make it harder to recapitalize. Further, the WSJ reported earlier this week that companies have been choosing pay cuts and furloughs instead of layoffs. This could be another hurdle in the way of increasing employee pay back to a pre-recessionary state. Increasing taxes on cell phones raises the cost of doing business yet again. This is yet one more tax that is going to decrease company’s profitability (albeit not a huge amount) and make it harder to recapitalize.

Further, the WSJ reported earlier this week that companies have been choosing pay cuts and furloughs instead of layoffs. This could be another hurdle in the way of increasing employee pay back to a pre-recessionary state.

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