In conjunction with the upcoming November 1st deadline for the FCC Form 499-Q, all interstate telecommunications service providers are advised to conduct a comprehensive review of Federal Universal Service Fund contribution obligations to ensure revenue is reported to the Universal Service Administrative Company (“USAC”) consistent with FCC regulations. Review now is crucial because projected revenue reported on the FCC Form 499-Q due November 1st covers the First Quarter of next year (January 1st – March 31st), and hence sets the stage for annual contribution obligations.
As a courtesy to clients, we have prepared the following document highlighting the basic mechanics of the Federal Universal Service Fund, including some of the scenarios (and pitfalls) contributors face when remitting contribution to the Fund:
Download “Federal Universal Service Fund Reporting At a Glance”
All clients registered with the FCC, including clients that are traditionally de minimis, are encouraged to review this document in detail. As scenarios in the document illustrate, failure to adequately anticipate, collect and remit USF contribution throughout the year can result in costly double-contribution and penalties.
Clients who have questions about completing the upcoming FCC Form 499-Q due November 1st are encourage to contact The Commpliance Group as soon as possible. We are happy to review revenue projections and determine FCC Form 499 contribution obligations.
In addition, clients who have questions about issues surrounding collection, remittance and payment of FUSF charges generally should consult with an attorney at our affiliated law firm, The Commlaw Group.
As Ben Franklin was fond of saying: “An ounce of prevention is worth a pound of cure”… particularly with a USF contribution factor of 17% or more!