Telecom tax compliance is a complex and challenging task, requiring specialized expertise. There are a myriad of taxability rates and rules associated with the various aspects of telecom tax such as wireless, local, long-distance, prepaid, data communications. There are bundling and tax-on-tax issues. Plus, nuances between states make understanding the taxability even more difficult.
Once you get your arms around the taxability, then local jurisdictions complicate the compliance process by requiring hundreds, and sometimes thousands, of returns to be filed each month.
With frequently changing rules and the introduction of new technologies, you can find yourself on a never ending treadmill struggling to keep up. Developing in-house expertise is one option…leveraging TaxConnex and our knowledge base is a better option.