Telecom Companies Face Significant Financial and Tax Risk for Overcharging for 911 Fees
Telecom companies have been cited for overcharging customers for 911 fees for many years, running afoul of state regulatory authorities and finding themselves facing state taxing authority auditors and facing huge tax deficiencies, including interest and penalties for not reporting and remitting all of the taxes due.
One example is T-Mobile in Maryland who is now facing audit. Government leaders in the state have estimated that T-Mobile has overcharged customer for 911 fees in the amount of several hundred thousand dollars. T-Mobile’s explanation has been that the law concerning 911 fees was ambiguous—needless to say, not an acceptable defense for overcharging and failing to correctly charge, collect and remit. As a result of this activity, the company faces the likelihood pf a significant tax deficiency bill, including substantial penalties and interest.
How Can Telecom Companies Assure That They Are Correctly Charging, Collecting, Remitting and Reporting 911 Fees
The use of software such as CCH® SureTax®, which constantly tracks the rates and rules, collection and remittance obligations and systematically and accurately handles the required reporting, ensures that a telecom companies and correctly meeting all of the rules and requirements in every jurisdiction. Adoption of the software can save telecom companies significant financial risk and tax liability.