Is the tax the correct percentage? Is the service exempt from certain types of tax or surcharges?
Is the service subject to FUSF?
Federal, State and Local taxing authorities and multiple surcharges that carrier’s impose or pass through increase your telecom costs by a double-digit percent.
Why is a tax and surcharge audit the most overlooked item?
- A bill delivered via EDI or another electronic form, can truncate, or lump all taxes and surcharges into one field.
- The bill paid off the summary page.
- The taxes and surcharges listed as a dollar amount with out any tie into to the service.
- The audit is looking at a hundreds of pages paper of bills.
- The belief the taxes & surcharges applied correctly, with no mark up.
A Tax & Surcharge Audit involves the application of
-State and Federal Regulations
-State and Federal Tariffs
-State and Federal Tax Laws & Rulings
-The Carrier Service Guide
-The Location, Type of Service, and End Use of Service
The majority audits I perform center on the improper application of Telecom Taxes and Surcharges.