IRS defends cell phone tax proposal

June 12, 2009 7:37:52 PM PDT
The Internal Revenue Service is defending its proposal to enforce a law that taxes personal use of company cell phones.

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The IRS says the changes are aimed at helping businesses comply -- not taxing individuals. Under the proposal released this week, employees could end up paying taxes on 25-percent of the value of their work cell phones.

The IRS says workers could avoid it by showing proof they used personal cell phones for non-business calls while on the job.

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