Paul L. Caron
Dean





Tuesday, July 3, 2007

iPhone = iTax: Apple Employees Will Have to Pay IRS for Steve Jobs' "Gift"

Apple has announced that by the end of the month it will give its 18,000 full-time U.S. employees a free 8-gigabyte iPhone (retail price: $599).  Apple has not said whether it will also pick up the cost of the wireless plan (two-year contracts start at $59.99).  The tax angle?  Apple will have to include the $599 on the employees' W-2s as taxable compensation, and the company will have to pay employment taxes on the amount as well.  (Hat Tip:  TaxGirl.)  Press coverage:   Reuters, San Jose Mercury News & ThinkSecret.  For a related story, see Tax Consequences of Microsoft's "Gift" of Laptops to Bloggers and TaxGirl's coverage

https://taxprof.typepad.com/taxprof_blog/2007/07/iphone-itax.html

Celebrity Tax Lore | Permalink

TrackBack URL for this entry:

https://www.typepad.com/services/trackback/6a00d8341c4eab53ef00e008d137208834

Listed below are links to weblogs that reference iPhone = iTax: Apple Employees Will Have to Pay IRS for Steve Jobs' "Gift":

» iPhone schtuff roundup from Boing Boing
Tart up your iPhone with these 320 x 480 crops of great works by legendary erotic photographer Steve Diet Goedde (produced on request by BB readers' popular demand -- evidently, a lot of Goedde fans read this blog). No full nudity here, just lovely, c... [Read More]

Tracked on Jul 9, 2007 9:39:00 AM

Comments

Nice job getting the Boing Boing nod.

http://www.boingboing.net/2007/07/09/iphone_schtuff_round.html

Posted by: Scott Brenner | Jul 9, 2007 12:39:15 PM

I'd rather pay the sales tax.

Posted by: M. | Jul 4, 2007 7:35:32 AM

Apple should just charge the "employees" 1 dollar for the phone and take a WRITE OFF LOSS!

Posted by: unrealworld | Jul 3, 2007 10:25:44 AM