Case Study: Telecom Tax

The Challenge:

A leading provider of IT and communications solutions was facing mounting frustrations with its outsourced telecom tax provider - a large, global accounting firm partnered with a third-party payment processor. Their relationship had become transactional and inefficient, with many miscommunications, missed filings, and a lack of ownership. Telecom tax and regulatory compliance, already complex areas, were being managed in a way that created more work than it solved.

The Director of Tax at the company explained, “We needed a partner, not 300 people touching our account. We ran into issues constantly, returns filed incorrectly, payments missed, and notices piling up. It was more work to have them as a provider than to just do it ourselves.”

Excessive consulting fees, impersonal service, and a lack of customization caused a breakdown in trust. The final straw? A $500,000 tax payment error that the provider wouldn’t take accountability for, just pointed fingers at the third-party payment provider. It was clear they needed a change and a provider that could truly support them.

Why TaxConnex?

Partner-focused. Experienced. Human-first.

The company explored other providers but ultimately chose TaxConnex because of their deep telecom expertise and personalized approach. From the beginning, the experience was different, led directly by TaxConnex Founder & CEO, Robert Dumas.

“Robert didn’t just talk about partnership, he delivered it,” said the Director of Tax. “He’s proactive, flexible, and focused on doing what’s right. That’s what we wanted, someone who feels like part of our tax department.”

Some of the key decision factors in choosing a provider included:

• Fair and transparent pricing with no nickel-and-diming
• Ability to customize processes and reporting
• Clear communication and quick response times
• S.-based team with direct oversight and accountability

They added, “I wanted someone who sees something odd in the data and says, ‘Hey, this looks off - do you want to check it?’ That’s what we get now.”

The Results:

A true extension of the tax department.

Since partnering with TaxConnex, the company has already seen a major shift in the quality of their compliance experience. While the full efficiency gains are still ramping up, the partnership has brought noticeable improvements:

• No more finger-pointing – Issues are resolved swiftly, without the blame game.
• Better customization – Reports and processes are tailored to their needs.
• No third-party systems – TaxConnex has a fully integrated treasury process for tax payments.
• Improved confidence – Mistakes are addressed, not debated. The relationship has far more accountability.
• Long-term efficiency – As cadence builds, the workload is expected to improve significantly.

“TaxConnex is a steward of our compliance, and that peace of mind is invaluable.” Whereas before, the Director of Tax said, “Nearly every quarter, there was an issue - either the return was filed but not paid, or the payment went through without the return... There was a constant disconnect between the accounting firm and the payment processor, with each pointing fingers. We were left trying to sort out who dropped the ball.”

Looking to switch telecom tax outsourcing providers? Download our free guide today!