Tax questions

If you were audited of course you could fight this. The cellphone is now more than just a cell phone. you can get weather traffic and all kinds of data information. Who is to say what you use your data portion for? you can also use your bills to prove use if you actually use your phone to contact work. At the end of the day if your cell phone costs $1200 a year
you would only be hit for $400 or so plus penalties for each year you are audited for I guess for that deduction. My company no longer has an 800 number due to cost. They expect us to call when a verbal on a load is needed.

They say less than 3% of returns are audited and I don't think they are looking for a truck driver that is trying to pocket an extra three or four hundred dollars even if it might be a stretch.

 

The problem is you don't get audited right away . It could be 2 or 3 years . That increases penalties and fines . Then when they see you had a disqualified exemption 2 years ago you get flagged and they will likely check the more recent returns . Someone claiming a phone most likely claimed other expenses that will be disallowed .
My company gave me a cell phone I have unlimited use on , including personal calls . If you need to use a phone for company use you should have a separate phone for that and claim the expense .

 

I would not look for the cell phone to be a problem anymore. The packages that are there are based on cost whether used or not. They can set the % of what they believe it is used for.

As far as audits go. They will look at the cost and they allow an arguement to justify the expense. There are usually no penalties associated with audits unless there is flagrant disregard to the rules. The IRS will allow the taxpayer to make changes on returns that are deemed to be an issue.