Based on our firm‘s preliminary analysis, in its desperate attempt to shore up the TRS Fund contribution base, we believe NECA may have exceeded its lawful authority by assessing TRS contributions on carriers providing “wholly” international telecommunications service (communications with both originating and terminating end-points outside the U.S.). This memorandum alerts clients to this potentially ultra vires action and invites clients affected by NECA‘s recent actions to seek counsel prior to making payments.
Clients are advised to carefully review their NECA invoices related to the July 2009 to June 2010 funding year. Further, clients should review their 2009 Form 499-A, paying particular attention to Line 412(e) which reports revenue derived from wholly international services in 2008. If revenue was reported on Line 412(e) and the NECA TRS invoice your company received appears to impose contributions on said revenue, you should immediately contact our firm to discuss your options.
We caution against delay. If your company is affected by this issue, you must act quickly and aggressively; you should not ignore this matter or you risk further peril. Under the FCC rules, an invoice issued by the Commission or its administrator transforms into a federal “debt.” Under the Debt Collection Improvement Act (“DCIA”), a NECA invoice that is not paid in full by the due date becomes a delinquent debt owed to the United States. Thereafter, the FCC may transfer the debt to the U.S. Department of Treasury for collection. Additionally, interest and penalties apply to debts over 90 days overdue. Further, the FCC‘s “red-light rules” withhold benefits from carriers with delinquent debts. For example, the Commission will not approve applications submitted by “red-lighted” carriers.
Thus, any client who identifies an illegal charge should address this matter immediately. We strongly urge clients affected by this unlawful NECA act not to delay. Should you have any questions regarding this memorandum, or would like to pursue your legal remedies against NECA and the FCC for these apparently unlawful and ultra vires TRS Fund contribution assessments, contact Jonathan S. Marashlian at (703) 714-1313 or jsm@commlawgroup.com.
