Communications Taxation '25
Pre-Conference Half-Day Workshop
Tuesday - May 13, 2025
"Challenges in USF Reporting" Workshop
This workshop is included with regular conference fee.
This workshop explores the Universal Service Fund (USF) issues that have long plagued telecommunications and emerging operators. Leading attorneys from the law firm of Nelson Mullins will discuss the history of the USF and its uncertain future, how to navigate difficult issues impacting the determination of carrier contributions to the USF, and the USF audit process. The workshop will provide specific insights on the problems of the USF contribution factor, the uncertain future of the USF from the Consumers’ Research v. FCC Supreme Court case, and the prospects for USF reform. In addition, this session will provide an in-depth discussion of common USF reporting dilemmas, such as reporting bundled service revenue, making effective jurisdictional allocations, when to use the safe harbors, and handling special cases in USF reporting. Finally, the session will discuss the USAC contributions audit process, common findings, and when to revise 499-A filings.
This session is suited for both experienced telecommunications tax personnel involved with USF regulatory compliance activities, as well as new entrants offering (or looking to offer) telecommunications services as part of their overall service package.
Presenters:
Steve Augustino - Nelson Mullins Riley and Scarborough LLP
John Heitmann - Nelson Mullins Riley and Scarborough LLP
Daniel Brown - Nelson Mullins Riley and Scarborough LLP
Agenda:
Introductory Session – History of the USF: Past and Future
- History of the USF
- Introduction – Purpose of USF (affordable access to telecom services for all Americans)
- Historical Background
- Key Components – High-Cost, Lifeline, E-Rate, Rural Health Care
- Administration and Funding
- The USF’s (Uncertain) Future
- Legal challenges over fee structure and transparency
- Consumers’ Research v. FCC Supreme Court Case
- USF Reform
- Contribution Reform Proposals
- Expanding the Contribution Base
- Transitioning to Congressional Appropriations
- Benefits Reform Proposals
- Modernizing Support Programs
- Implementing Spending Caps
- Congressional Reform Efforts
Navigating Difficult Issues in the USF
- Achieving Excellence in Execution
- Bundled services vs single integrated services
- Options for allocating revenue from bundles
- Jurisdiction allocations: When to use safe harbors
- Revenue estimates and true-ups: How not to get burned
- Special Cases in USF Reporting
- Reporting for the first time
- Revisions to revenue reporting
- Mergers/acquisitions/deactivation
USF Audits
- Introduction
- Purpose of USF audit
- Role of the Universal Service Administrative Company (USAC)
- The USF Audit Process: From Start to Finish
- Selection: Random and risk-based selection of beneficiaries and contributors
- Notification: USAC sends audit notification and requests documentation
- Fieldwork: Review of financial records, service delivery, and compliance
- Reporting: Draft findings shared with the audited party for response
- Final Report: Finalized audit report with corrective actions and recommendations
- Common Findings and How to Avoid Them
- Common Contributions Findings
- Best Practices to Avoid Issues
- Post-Audit Issues
- Appeals
- Implementing the Audit/Revisions to the Form 499-A
Q&A Throughout
Dress is business casual.