Facing Tax Compliance and Regulation Challenges of Telecom Expense Management
March 05, 2013
By Rachel Ramsey, TMCnet Web Editor
When it comes to telecom tax compliance and regulation, there are various aspects to consider, such as wireless, local, long-distance, prepaid and data communications. Local jurisdictions complicate the compliance process by requiring hundreds of returns to be filed each month. Included in many telecom expense management solutions, which help manage and eliminate mistakes in telecom invoices, are telecom tax audits to review taxes associated with telecom expenses.
Providers of telecom-enabled local services such as VoIP, prepaid, cloud solutions, UCaaS, machine-to-machine and digital goods face challenges complying with complex and varied telecom tax laws and regulations.
Complexities of managing tax and regulatory compliance include registering with the FCC (News - Alert) and the Departments of Revenue and Secretaries of State, determining the taxability and assessability of telecom services, calculating and reporting taxes and fees, knowing the difference between the two and the evolving concept of nexus – which represents a physical connection between an out-of-state company and a particular taxing jurisdiction that makes the out-of-state company responsible for collecting and remitting sales tax on their transactions.
There are other activities that could trigger nexus and represent risk to a business. Many states have concluded that VoIP providers utilize and benefit from existing telecommunications infrastructure, which can produce nexus. Other examples are when sales reps travel into another state where they are not based to solicit sales, employees attend trade shows, or there is an affiliate or agent relationship that supports selling or servicing activities.
“Tax and regulatory fee compliance can be a daunting task for companies planning telecom-based offerings,” says Brian Greer, TaxConnex partner.
Overcoming the Challenges
In the upcoming webinar “Telecom Tax: Simplifying the Tax and Regulatory Obligations of Your Telecom Offering,” representatives from TaxConnex, CCH (News - Alert) at SureTax and Marashlian and Donahue, LLC – The CommLaw Group will join to discuss these telecom tax challenges and how to simplify the process. CFOs, VPs, finance and tax decision makers, directors, senior managers and product managers of telecom services and directors and senior managers of taxes can all sign up to interact with these presenters:
- Robert Dumas, founding partner from TaxConnex, an independent sales and use tax outsourcing and consulting solutions provider.
- Mike Sanders, chief architect of CCH at SureTax, a provider of telecom tax and VoIP tax solutions through SaaS (News - Alert) tax calculation software. CCH CorpSystem SureTax Telecom is a real-time Web-based tax calculation solution maximizing CCH rates and taxability content specific to the telecom industry.
- Jonathan Marashlian, managing partner at Marashlian and Donahue, LLC – The CommLaw Group, a full service law firm serving the comprehensive legal needs of the communications industry and all aspects of federal and state telecommunications law and regulation, including the taxation of communications services.
Attendees can learn the basics for licensing and registering as a telecommunications provider, simple Web-based solutions for calculating telecom taxes and fees that integrate with existing financial systems, options for reporting and filing taxes and fees including in-house and outsourcing solutions and remediation options if exposed to taxes and fees.
The webinar will be held on Monday, March 18 at 2 p.m. ET/11 a.m. PT. Register for the webinar today.
Edited by Rich Steeves