Telecommunications Tax and Regulatory Compliance

Simplify telecom tax and compliance, allowing you to operate with confidence.

Telecommunications connect our world. However, organizations in this industry face a complex set of tax and regulatory rules. From emerging VoIP technologies to the expansion of 5G networks, the rules governing your operations are constantly in motion. Staying on top of them is key to your organization’s success and financial health.

EisnerAmper’s telecom tax professionals have 100+ years of combined experience in navigating the process for carrier registration and ongoing compliance. With a myriad of statutory and regulatory responsibilities, state compliance can pose complex challenges for carriers. Our team of tax professionals can help you maintain compliance, maximize incentives, and address tax burdens from pre-launch through post-launch and ongoing growth and maintenance.

Addressing Key Challenges

The telecommunications sector navigates complex tax and regulatory demands that directly impact profitability and operational efficiency. EisnerAmper understands the challenges that you face, including:

Adapting to regulatory shifts
Accurate taxability determinations
Strategic resource allocation

Mitigating audit risks
Maximizing tax incentives
Proactive compliance management

We understand that navigating these challenges effectively helps you maintain a competitive edge. It’s not just about compliance; it’s about protecting your bottom line, optimizing resources, and creating a stable operational foundation for sustained growth in the telecommunications industry.

Our Services

From initial launch to mature expansion, EisnerAmper provides comprehensive, tailored services to guide your business through each critical phase, maintaining compliance and optimizing your financial position.

Registration & Compliance: Pre-Launch

Telecommunications Service Providers must navigate multiple layers of compliance, including registering with the FCC and its collection entity, the Universal Service Administrative Company (USAC). This process may involve FRN/Filer ID applications, Secretary of State registrations, Department of Revenue (state and local) registrations, Reseller’s Certificates, and PUC registrations as a VoIP provider, if required.

Our formal onboarding process, which takes between 30 to 60 days, involves validating credentials and maintaining accuracy. During this process, EisnerAmper will establish filing credentials and develop a comprehensive calendar of all ongoing transactional tax filings.

Compliance: Post-Launch

EisnerAmper provides ongoing compliance support for the primary categories of compliance for a typical carrier. Reporting requirements will vary by carrier for Federal and State Compliance. We work with your team to determine applicability and customize your services accordingly.

Federal and State Regulatory Compliance

Our team conducts quarterly evaluations of revenue data to maintain compliance with federal, state, local, and agency reporting requirements. We prepare and complete essential reports, including USF 499A, USF 499Q, Form 159, CPNI, Form 477, and state PUC/surcharge reports. Through a streamlined reporting process, we facilitate accurate, consistent, and timely reporting and payment. Additionally, we manage informational and assessment notices, providing robust support for USF and state audits.

Transactional Tax Compliance

Our team prepares and files tax returns for telecom, sales, excise, and gross receipts taxes, as well as PUC surcharges and fees, ensuring the timely remittance of taxes. We manage treasury operations by the terms outlined in the Treasury Rider and report and reconcile tax liabilities. Additionally, we provide robust support during audits and manage informational and assessment notices to maintain compliance.

Registered Agent, Annual Compliance & State Qualification Licensing

We support annual filings for state qualification reports, excluding those for Alabama, Oklahoma, Maryland, Texas, South Carolina, and Puerto Rico, which are typically prepared in conjunction with the respective state income tax returns. Our team conducts initial and ongoing nexus evaluations to determine filing requirements. Additionally, we evaluate and manage Secretary of State registrations, Public Utility Commission (PUC) registrations, and jurisdictional licensing.

Notice Administration

We respond to and resolve notices related to tax data delinquency, tax payment funding, and non-telecom compliance issues, such as Service of Process.

Exemption Management

Our full-service exemption management team coordinates registrations and remittances for both customer and vendor exemption documentation, providing comprehensive support.

Working with EisnerAmper

Our team has decades of experience in the communications industry, including former industry professionals, along with career sales and transactions tax and communications regulatory compliance professionals. They maintain advanced credentials and stay current on the latest trends and regulations through webinars, conferences, and other continuing education opportunities.

Comprehensive Services

We go beyond just compliance; we act as an outsourced regulatory and tax department, familiar with your services, industry, processes, and registration needs, providing advisory services tailored to your specific needs.

Our responsive and dedicated teams make sure that you remain informed, freeing you to focus on your business. We support you beyond just your organization's telecom needs – including R&D, international, personal tax, and more.