It wasn’t long after AMTEL launched its TIMS cell phone software offering organizations a compliance solution for Internal Revenue Service (IRS) guidelines that split billing between corporate and personal usage for cell phone expenses, that the IRS (IRS) audited several large corporations making them liable for millions of dollars in back taxes related to mobile services spending.

 

Even for billion dollar multinationals, losing millions over mobile reporting infractions is not an insignificant event.

 

The platform from the California-based company provides the segregation of corporate wireless, mobile, and cell phone billing into company verses personal usage segments. Companies can automatically send the reports to the end users or the divisional heads.

 

As transparency becomes more and more the norm in doing business, increasing government legislations such as Sarbanes Oxley requirements have changed the dynamics of telecommunications in the enterprise.  That 2002 legislation requires secure, auditable electronic communications for companies, including instant messages.

 

Now, the IRS is classifying mobile phones and pagers as "listed property", making them subject to strict substantiation requirements, and business use of listed property is excluded from the wages of the employee as a working condition fringe benefit.

 

The telecommunications and wireless expense management company’s TIMS cell phone software platform is designed to provide a workable method for tracking these mobile services now monitored by the IRS. Employees can set up phone numbers to be tracked for personal usage, and companies can establish a usage policy and track it. The system automatically segregates calls and splits billing, according to the company.

 

The hosted SaaS (News - Alert)  + based platform is an efficient solution for procurement, invoice auditing, inventory management and cost center allocation of phone services. It can help IT and accounting departments streamline and reduce telecom/mobile expenses at their organizations.

 

However, any personal use of cell phone and pager devices is taxable and included in the wages of the employee. If substantiation requirements are not met, all use of the mobile device is taxable and included in the wages of the employee.

 

And the regulations are anything but rudimentary, as the IRS has implemented rules requiring records including written documentary evidence sufficient to establish each element of business use and include detailed listing of calls made and costs of equipment and service.

The software provides a six phased plan to make sure an organization is compliant with federal regulations. They are Order/Procurement Management; Invoice Processing & Cost Allocations; Auditing & Contract Management; Optimization; Knowledge base; and reporting.