10 APA's Top Payroll Questions & Answers for 2020 Listed property expenses (IRS) After Congress removed cell phones from the listed property category, the IRS issued guidance that allowed employers to reimburse employees for the business use of their own phones with minimal documentation required from employees. For example, employees must submit the bills, but not documentation of their business use. Computers and peripheral equipment have now also been removed. How does this impact employers that reimburse internet access fees for employees who work from home? Must employees work at home at their employer's convenience before such reimbursements are tax exempt? And what records must employees keep? A. For the reimbursement of the cost of an employee's internet service to be nontaxable, the accountable plan rules have to be met. The accountable plan rules are met when there is a business connection, and there are adequate safeguards against private misuse. They must be necessary for the conduct of the employer's business, and there is substantiation of the expense. In addition, any excess reimbursements must be returned. Actual business use must be established. A general statement of use is not adequate. Only business use that is properly substantiated can be reimbursed under the arrangement. For more about accountable plans, see Treas. Reg. ยง1.62-2, Reimbursements and Other Expense Allowance Arrangements. 79 Recordkeeping and Record Retention Q.