House passes Sam Johnson cell phone fix
Washington,
Apr 14 -
House passes Sam Johnson cell phone fix Johnson’s measure centerpiece of Tax Day legislation
Today the Democrat-led U.S. House of Representatives passed a bipartisan, common-sense measure authored by U.S. Congressman Sam Johnson (3rd Dist.-Texas) by a vote of 399 to 9. The Democrats made Johnson’s legislation to modernize rules for cell-phone use the cornerstone of their annual Tax Day bill.
“As we all know, in today’s 24-7 economy, cell phones and blackberries have become the modern version of landline office phones. And yet, unlike landline phones, workers and their employers must keep detailed call logs or else face the wrath of the IRS. This means a business can lose its deduction while a worker can face taxes for making personal calls. This is just wrong. We don’t nickel and dime workers for making the occasional personal call from a desk and we shouldn’t for cell phones either,” demanded Johnson.
The MOBILE (Modernize Our Bookkeeping In the Law for Employee’s) Cell Phone Act, H.R. 690, would change the outdated cell phone tax rules that require employers and employees keep track of all cell phone and Blackberry use. The Act passed as part of H.R. 4994, the Taxpayer Assistance Act.
A constituent concern generated the idea for Johnson’s cell phone fix. In February 2008, a lawyer from North Texas contacted the Congressman on behalf of a client. The IRS wanted the client to keep records on employee cell phone and Blackberry use or forfeit the deduction. Given the tremendous advances in this technology, Johnson demanded the IRS and the Congress modernize the tax code as quickly as possible.
“Times have changed since Congress passed this rule in 1989, when cell phones came with a suitcase, were used by the likes of high-flying corporate executives, and cost a small fortune,” said Johnson.
“Even the IRS gets it that the times have changed. In fact, last June IRS Commissioner Doug Shulman said in a statement ‘the passage of time, advances in technology, and the nature of communication in the modern workplace have rendered this law obsolete.’ There you have it! Even the IRS Commissioner believes that this law needs to be changed,” concluded Johnson.
The bill now awaits Senate approval.
Johnson represents portions of Dallas and Collin Counties.
