TELECOM Digest OnLine - Sorted: Lingo to Charge Taxes in February - What's Up With That?

Lingo to Charge Taxes in February - What's Up With That?

Ted Koppel (tkoppel@adelphia.net)
Mon, 10 Jan 2005 16:14:55 -0500

Received from Lingo/Primus' customer service today in email. So much
for "no taxes on VOIP".

Dear Lingo Customer,

As a valued Lingo broadband phone service customer, we strive to
provide you with the best service possible at the most affordable
costs. Until now, we have been fortunate to take advantage of current
federal regulations and a regulatory environment that has allowed us
not to charge Federal taxes and other cost recovery fees on your
service. However, changes in both areas have caused us to modify our
current policy.

Effective with your billing cycle in February 2005, your Lingo service
will be subject a 3% Federal Telecommunications Excise Tax on your
monthly subscription fees and additional usages charges from the
previous month. Additionally, your Lingo phone numbers are now subject
to a Lingo service regulatory recovery fee of a $1.50 per phone number
on your service. This includes your primary voice, secondary voice,
and fax numbers.

In anticipation that you may have some basic questions regarding these
changes, below are some questions and answers for your reference.

*What is the Federal Excise Tax?*

Lingo is required by Federal law to collect a 3% federal excise tax on
the amount which it charges its customers for all communication
services. This tax applies to monthly subscription fees as well as to
any additional usage charges.

*What is the Regulatory Recovery Fee? *

The Lingo service regulatory recovery fee is $1.50 per phone number.
This fee is charged to our Lingo customers to recover the costs of
certain regulatory and compliance requirements imposed, or expected to
be imposed, on us by the federal government or various states and
localities. These costs can include charges associated with supporting
services such as state or local universal service, emergency calling,
law enforcement, disability compliance and certain tax requirements.
Your Regulatory Recovery Fee reflects a $1.50 charge for each domestic
or international phone number, including primary voice, secondary
voice, and fax numbers.

We thank you for your understanding and your continued use of Lingo
service.

Regards,

Lingo Customer Service

Lingo is a registered trademark of Primus Telecommunications, Inc.

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