As it stands now, those in the U.S. who use a mobile phone provided by their company for personal use are expected to pay taxes for this, but the IRS has asked Congress to repeal this law.
The regulation taxing personal use of business phones isn’t new, but even the Internal Revenue Service doesn’t like it. This government agency describes it as “burdensome, poorly understood by taxpayers, and difficult for the IRS to administer consistently.”
IRS Commissioner Doug Shulman wrote in a public statement, “Secretary Geithner and I ask that Congress act to make clear that there will be no tax consequence to employers or employees for personal use of work-related devices such as cell phones provided by employers. The passage of time, advances in technology, and the nature of communication in the modern workplace have rendered this law obsolete.”
Now it is up to Congress to repeal the law — otherwise the IRS will be forced to continue to find ways to enforce it.