The U.S. Internal Revenue Service issued guidance to clarify the tax treatment of employer-provided cell phones, which no longer defines cell phones as listed property that generally necessitates additional recordkeeping by taxpayers.

The guidance, IRS Notice 2011-72, states that when an employer issues an employee with a cell phone mostly for noncompensatory business reasons,the business and personal use of the cell phone is typically nontaxable to the employee, and the recordkeeping of business use is not required in order to receive this tax-free status.

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