Communications Taxation '26
Pre-Conference Half-Day Workshop
Wednesday - May 6, 2026
"Challenges in USF Reporting" Workshop -- Including an update on USF reform efforts at the FCC and in Congress
This workshop explores the Universal Service Fund (USF) issues that have long plagued communications service providers. 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, 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 include telecommunications services as part of their overall service package.
Presenters:
- John Heitmann - Nelson Mullins Riley and Scarborough LLP
- Joshua Guyan - Nelson Mullins Riley and Scarborough LLP
- Daniel Brown - Nelson Mullins Riley and Scarborough LLP
Agenda:
Introductory Session – History of the USF: Past and Future (John Heitmann)
- History of the USF
- Introduction – Purpose of USF
- Historical Background
- Key Components – High-Cost, Lifeline, E-Rate, Rural Health Care
- Administration and Funding
- The USF’s (Uncertain) Future
- Major Legal Developments
- Consumers’ Research v. FCC Supreme Court Case – Now Decided (June 27, 2025)
- What Happens Next: Ongoing Litigation in the Fifth Circuit
- USF Reform at the FCC and in Congress
- Contribution Reform Proposals
- Distribution Reforms and Proposals
- Modernizing Support Programs
- De-duplicating federal programs
Navigating Difficult Issues in the USF Reporting (Joshua Guyan)
- 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 Contributions Audits (Daniel J. Brown)
- Introduction
- Purpose of USF contributions 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.