The IRS has begun to crack down on businesses providing cell phones to its employees because rather than allowing the cell phone as a deductible business expense for the business, it is calling the cell phone a taxable fringe benefit to the employees.  There is a BUT.

    But the employer can continue to call the cell phones a deductible business expense if the employee keeps exact records of all calls and notates whether they are business and personal and then reimburses the business for all of the personal calls.  Other employees, such as security, plumbers, carpenters, etc., who use their telephones instead of radios or walkie-talkies will continue to be an allowable expense because these telephones are not for personal use and are generally left at the business at night.