Some Blackberry News

[irishgod52]

I just pulled this story from the Comcast home page.


Yet Another Reason to Ditch the BlackBerry
By Anthony Catalano

Think it can't get any worse than having your employer supply you with a mobile device that essentially tethers you to the office 24 hours a day, 7 days a week? Think again. The Wall Street Journal reports today (subscription required) that Uncle Sam is considering charging you for this privilege of being on call at softball games, barbecues and romantic dinners.

The government's logic: Chances are, you're using that cell phone for personal purposes a portion of the time. For some, it's the occasional call home to say you'll be late for dinner. For others, it's constant Web browsing... all thanks to this employer-paid benefit.

So the Internal Revenue Service is weighing several potential models under which it'll count a portion of the monthly charges your employer pays for your phone as income for you. And you'll be taxed on that income in your standard tax bracket.

Just how much could this cost you? According to Martin Vaughan and Amol Sharma in today's Wall Street Journal article:

"The Internal Revenue Service proposed employers assign 25% of an employee's annual phone expenses as a taxable benefit. Under that scenario, a worker in the 28% tax bracket, whose wireless device costs the company $1,500 a year, could see $105 in additional federal income tax."

But don't storm over to your manager's corner office to complain... yet. The IRS is said to be accepting public comments on this proposal through September, when it will issue its final decision.

With taxpayer backlash expected to be rather vocal, one can't be sure this proposal will survive. This also is a rare issue where consumers and cell-phone carriers are in agreement -- and the big cell companies are already speaking up. From the Wall Street Journal article:

" 'This is a regulation from a bygone time, dating back to the infancy of the cellphone business, and it is in desperate need of updating,' said Howard Woolley, a senior vice president with Verizon Wireless, a venture of Verizon Communications Inc. and Vodafone Group PLC.

Such companies as Verizon and Sprint Nextel Corp. are backing congressional proposals to repeal the tax. They are supported by local government, education and farm groups.

'This is an outdated regulation that was established at the infancy of our industry,' Sprint spokesman John Taylor said. 'We don't think it's really relevant in today's economy.' "

So stay tuned. If Uncle Sam decides to continue down this unpopular path, you'll want to be the first one lining up outside your boss' door to ask to be un-tethered or take home a raise to offset this latest expense.

For more details on this developing story -- and an explanation of why you probably should be paying taxes on your employer-sponsored BlackBerry even under current tax law, check out "Tax Man's Target: The Mobile Phone" at WSJ.com (subscription required).

[txaggie84]

Typical IRS BS. I love taking them on. If they do change the rules, ill just find another way around them......

[drjay868]

This would only apply to those whose company provide them with a phone, right? Cause I use my own personal phone for business use and deduct that from my taxes....

Posted from my CrackBerry at wapforums.crackberry.com

[dtubbs06]

Originally Posted by drjay868

This would only apply to those whose company provide them with a phone, right? Cause I use my own personal phone for business use and deduct that from my taxes....

Posted from my CrackBerry at wapforums.crackberry.com

I do the same thing.

I'm sure that once the IRS realizes that there are people doing this, they will just eliminate it as a deductible expense, and then charge us for the privilage of using our personal cellphone for work too.

[cenloe]

The way that I understood it was that currently businesses are taxed on the total amount of the cost of a work cell, depending on how much of the minutes, data, mms and sms are used for work. Companies could avoid this tax by reporting exactly how much of it was used for work purposes and thus not avoid the tax entirely but instead pay less. Apparently this is a royal pain in the a$$ so most businesses dont do this, it would cost way too much. The proposal I heard of is a compromise, tax companies on only 25% of the total cost, instead of repealing it entirely, as some lawmakers have suggested.

[dynot]

This tax regulation has been on the books since the 80's and I'm sure only a small percentage of companies actually have their employees keep a log of personal calls. We have a similar tax code in Canada and I haven't heard of mamy companies keeping a log here either.

In fact, as the financial manager of our company I am in a conflict of interest since I should enforce this but on the other hand I have a company-supplied BB as well so that would cost me dearly especially if we applied that retroactively.

Nevertheless, total BS on both sides of the border. Using that logic, what's there to stop them from taxing us on use of a company laptop.

Next thing you know they'll tax us for using the company toilets since that's obviously for our personal benefit only.

[markdental]

Thanks Obama.

Posted from my CrackBerry at wapforums.crackberry.com

[pkcable]

Reminds me of the modem tax BS that comes up every few years. Makes nice copy, but will likely never happen.

[Iceman]

I don't think it will pass either. Made for good reading though...

[a_silent_song]

ANOTHER tax? Good Lord. Is that all they know how to do in DC?

Posted from my CrackBerry at wapforums.crackberry.com

[HiLifeRocker]

Isn't is sour grapes that this miserable writer decided to drag Blackberry's name through the mud? Is it really Blackberry's fault for this pending legislation? I think not. He's confusing a brand for a "mobile phone with multi-tasking capabilities for BIS/Business" ... like Q-Tip versus a cotton swab!

Furthermore, how will the Feds break out each user's "personal" use versus "business" ? A year ago, the company I work for had a paper bill for over 100 phones - it was 5 inch paper stack that came in a cardboard box. Laughable!

[richs10]

The regulation to tax the personal use portion of cell phone use has been on the books for years, but not enforced. And this new proposal is not likely to pass.

It's like the mileage documentation rules that were passed when President Reagan took away our deduction for credit card interest. (remember that?) Technically, we are required to keep a log of business miles, but I don't know anyone who actually does. Both of these requirements are too cumbersome to enforce. Don't throw away your BlackBerry yet.

[PotatoBerry]

Originally Posted by markdental

Thanks Obama.

Posted from my CrackBerry at wapforums.crackberry.com

And Mr. Geithner, did you pay your taxes yet Tim?

[Dvx67]

I don't see it happening but doesn't surprise me one bit that the IRS would attempt it.

The company I work for does not provide cell phones to anyone but upper management. For the rest of us, we get a discount on phones and plans that has been negotiated in advance with various providers. I buy my own phone and pay my own bill, yet do use it for work some of the time (I just traded 3 emails with my boss while sitting here at my kitchen table on Saturday morning). This is not all bad because I only carry one phone and many people I know with company provided phones carry 2 with the personal phone being at their expense. And I am not obligated to be "on call" since it is my phone. I only respond to emails on my time when and if I want to. I think most companies could do something similar, or do something along the lines of a reimbursement bonus to avoid having to pay the extra tax.

[bobdelt]

They aren't changing any rules - theyre just thinking of enforcing them.

Anything your employer provides to you, for personal use - is taxable. This is how most people screw up their taxes, such as so many of Obama's nominations. Unless is 100% for the conveincence of the employer ,its taxable.

So if you use your bb for personal use, that counts as income.