Communications Taxation '23
Pre-Conference Half-Day Workshop
May 3, 2023
"Understanding USF" Workshop
No additional fee is required to attend this workshop, it is included
with the conference fee.
<<< draft agenda, updates pending >>>
This workshop explores the Universal Service Fund (USF) issues that have long plagued telecommunications and emerging operators. Six leading attorneys in the field will discuss basic principles and current issues impacting the determination of carrier contributions to the USF, including: the basic principles involved in determining the appropriate revenue base upon which to base the USF contribution; issues involved in classifying services and related revenues as telecommunications versus information services; methodologies used to determine telecommunications revenues by jurisdiction; the Form 499 and related instructions, highlighting key compliance areas; the USF audit process and common issues; USF-related issues to consider in connection with merger & acquisitions; and USF policy updates.
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:
- JACKIE MCHUGH AND ALLISON RULE – MARASHLIAN & DONAHUE, PLLC
- Steve Augustino - Nelson Mullins Riley and Scarborough LLP
- Brita Strandberg - Strandberg Strategy
Introductory Session – USF Basics: Form 499 – 1:00-1:30
Presented by: BRITA STRANDBERG - STRANDBERG STRATEGY LLC
- USF Basics
- USF assessable revenue options: domestic and international; end user; telecommunications service; and I-VoIP/other “telecommunications” revenues.
- Distinguishing end user revenues v. wholesale revenues
- Determining the jurisdiction of revenues – Interstate, Intrastate, International
- Classification of services
- Form 499 Form and Instructions
- Quarterly Annual Reports
- Reporting entity
- Filing of Form 499 revisions and waivers
- Calculating “USF-assessable” revenues
- Reporting methodologies
- USAC reporting to other funds (e.g., TRS)
- Q&A
Navigating Difficult Issues - 1:30--2:30
Presented by: STEVE AUGUSTINO - NELSON MULLINS RILEY AND SCARBOROUGH LLP
- 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
- Q&A
The Regulatory and Tax Compliance Ecosystem – 2:45-3:45
Presented by: JACKIE MCHUGH AND ALLISON RULE – MARASHLIAN & DONAHUE, PLLC
- Initial Tax Mapping Basics
- What are you selling?
- Unique issues associated with mapping I-VoIP services
- Mapping bundled servicesInterstate vs. intrastate service
- Traffic study?
- Cost recovery fees
- Unique Issues associated with other services
- Private line
- PIU certifications
- Ensuring both end points are assessed
- The Ecosystem
- Intersection between mapping software, billing systems and accounting records
- Mapping with an eye toward impacts on Form 499-A reporting, PUC compliance and state and local tax reporting
- Garbage in/garbage out
- Being an Active Participant in the Mapping Process
- Only you truly understand what you’re selling
- You have the ultimate responsibility for whether the data reported on your regulatory and tax filings is correct
- Mapping is not a “one and done” exercise
- Q&A
Transactional/Corporate Implications of the USF: Mergers, Acquisitions and USF Diligence – 4:00 – 4:30
Presented by: BRITA STRANDBERG - STRANDBERG STRATEGY LLC
Dress is business casual.