Politics

Are Sen. Ensign's Calls to His Campaign Staffer/Lady Friend Taxable?

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It looks like the IRS is backing off its plan to revive an ancient 1987 rule requiring tax payments on the personal use of company cell phones. In fact, according to a statement released yesterday from IRS commissioner Doug Shulman, it was all just a big misunderstanding:

Some have incorrectly implied that the IRS is "cracking down" on employee use of employer-provided cell phones. To the contrary, the IRS is attempting to simplify the rules and eliminate uncertainty for businesses and individuals.

Tell that to the University of California system, which got hit hard when the revival of the rule tentatively began a year ago. As I noted at the time, UCLA paid a $239,196 bill and UC San Diego had to shell out $186,471.

Speaking of misunderstandings about the cell phone tax, I got a press release from the office of Sen. John Kerry (D-Mass.) yesterday about this topicl, touting his longstanding work with colleague, friend, and life partner John Ensign (R-Nev.) to get the cell phone tax rule off the books: "Senators Kerry and John Ensign (R-Nev.) introduced legislation last year to end this practice," etc. etc.

I can't find the release on Kerry's website today. But we'll just assume that the Case of the Missing Press Release has nothing to do with Ensign's recent troubles.

This does raise an interesting question though: Would all the calls Ensign presumably made to the campaign staffer he was schtupping be categorized as personal or work-related when it comes time to fill out his tax returns? Careful there, Ensign. Make a mistake on this and it might cost you a Cabinet appointment. Oh wait, never mind.

Also, how does all of this relate to sexting?