The federal income tax implications of providing cell phones to employees for business (and some personal) use has now been fully resolved. The issue has been a source of widespread frustration for years, with industry groups criticizing the IRS’s treatment as outdated and out of sync with the widespread use and considerably reduced costs of cell phone technology today. But the IRS put the debate to bed recently by releasing two documents — on employer-provided cell phones and employer reimbursements for the business use of employees' personal cell phones — that provide favorable relief to employers and employees alike.

Source: Tax Alert