Corporate tax managers confront seemingly bewildering tax jurisdiction assignment issues daily. Nowhere, however, are tax assignments more challenging than in the telecommunications industry. Because of the nature of the business, tax directors wrestle with proper assignments on property and sales and usage taxes. Their mandate: comply and correctly assign taxes, or face the consequences of stiff penalties.
Tax professionals at telecoms understandably stay up nights worrying about audits and penalties for incorrect filings. These managers are often dealing with understaffed and under-funded tax departments. Many face the reality of using outdated or ZIP Code-based tax software products. Some must even undertake the arduous task of researching over 10,000 state and local tax jurisdictions. New special tax districts are being created every year, to compound the assignment challenge.
Developments in Location assignment technology now allow telecommunications companies to achieve greater precision in the assignment of tax districts both for their customers and corporate assets. Adopting a new and more robust system to correctly assign tax jurisdiction can enhance operation efficiency, reduce taxes and eliminate penalties and compliance issues, yielding stronger bottom line performance.
Free Whitepaper: Optimizing Tax Jurisdiction Assignment
Check out this free whitepaper for an analysis on the challenges facing telecommunications providers in assigning accurate tax jurisdictions. You will also learn of recent advances in location intelligence technology and how providers are meeting compliance and reducing costs.