In a recent post, IRS Wants to Tax Your Use of Corporate Mobile Plans, I was shocked to find out the Internal Revenue Service’s (IRS’s) policy on taxation of corporate mobile plans. Per Kelly from TaxGirl.com, she recommended contacting my local senator. And so I did. This is Senator DeMint’s response:

Dear Mr. Stewart,

 

     Thank you for contacting me to express your support for S.2668, the Modernize Our Bookkeeping In the Law for Employee’s (MOBILE) Cell Phone Act. I appreciate hearing from you on this issue and I share your support.

 

     You may be pleased to know that I am a co-sponsor and strong supporter of S.2668, which Senator John Ensign of Nevadaintroduced on February 26, 2008 and is now being considered by the Committee on Finance. This legislation would ease the IRS reporting requirements for tax deductions employers take for mobile phones they provide to their employees. Currently, cumbersome records of phone usage must be maintained, but this bill would streamline these requirements and allow employers to estimate usage.

 

     Like you, I believe that mobile devices are now a necessity for many employers and employees and should be treated as a normal business asset. By relaxing the documentation requirements for tax deductions, companies can focus on innovation and new products rather than maintenance of call logs for the IRS. Please rest assured this bill will have my support when it comes before the full Senate.

 

     Thank you again for sharing your thoughts with me. Please feel free to contact me in the future about anything important to you or your family. It is an honor to serve you and the state of South Carolina.

 

 Sincerely,

Jim DeMint
United States Senator

It’s great to know that Senator DeMint has his finger on this issue, and is a welcome breath of fresh air.

Ken Stewart’s blog, ChangeForge.com, focuses on the collision between the constantly changing worlds of business and technology. Ken is also the Director of Technology at Kearns Business Solutions.