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This policy outlines EMU’s position on cell phones needed for EMU business and outlines the procedure to obtain an allowance for business use of a personal cell phone. The Internal Revenue Service recently has designated cell phones as “listed property” for purposes of Section 280F of the Internal Revenue Code. One of the consequences of that designation is strict substantiation requirements of business and personal use. If the strict substantiation requirements are not met, all allowances and reimbursements are includible in taxable wages of the employee. The EMU policy is intended to provide for satisfying the IRS requirements by treating allowances as taxable wages, by prohibiting personal use of university cell phones provided, and by requiring strict substantiation of any non-allowance reimbursements for cell phone costs.
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Adopted by President’s Cabinet, June 28, 2006
Reviewed and updated by President’s Cabinet, June 26, 2007
Reviewed by Human Resources Director, April 2020