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The Control Point Solution to the IRS Federal Excise Tax Notification

Control Point Solutions is the leading provider of Business Process Outsourcing (BPO) for Telecommunications Expense Management (TEM).  Our programs manage your entire expense lifecycle for voice, data and wireless services.  With more than $7 billion of clients’ expenses under management, Control Point Solutions oversees more than 1.3 million telecommunication invoices and has reduced clients’ expenses by more than $1.5 billion to date.

A 3% Refund with Interest

On May 25, 2006, the Internal Revenue Service advised that a tax credit can be taken on your company’s 2006 Corporate Income Tax Return for specific Federal Excise Tax charges paid on telecommunication invoices.  The IRS conceded its dispute regarding the 3% Federal Excise Tax on long-distance service and will issue refunds to taxpayers for federal excise paid from March 1, 2003 through July 31, 2006.  This means you have an opportunity to recover up to 3% of your applicable voice and wireless phone bills, plus interest. Clients will be required to provide formal documentation for refunds and it is important to note that the notification sets out time-sensitive limitations for refund requests. 

The Control Point Difference

Control Point Solutions has an established track record of successful settlements on behalf of our clients.  Using a proven FET process, Control Point Solutions gathers, evaluates, submits and pursues critical settlement data.  To date, Control Point Solutions has filed 110 claims resulting in pending or recovered settlements exceeding $34 million.

With nearly 20 years of leading the TEM industry and with over 400 professionals with deep domain expertise, Control Point Solutions provides a competitively priced turnkey solution that includes strategy, data collection and documentation to address all of the key aspects of your filing. Control Point Solutions is uniquely qualified to assess and support the completeness of your FET claim.  The Control Point TEM Outsource solution contains a robust suite of reporting services that addresses all of the key aspects and complexities of your FET filing.  Critical elements that must be included in your filing to withstand IRS audit scrutiny are:

• Gather invoices from pertinent services from the past 41 months (or some portion thereof).
• Gather all vendor contracts.
• Analyze all invoices and contracts to determine exempt from non-exempt.
• Schedule FET totals on spreadsheets.
• Copy and assemble tax reports.
• Document methodologies used to arrive at FET figures.
• Document eligibility determinations.
• Schedule prior credits and refunds
• Perform the IRS interest calculations.
• Make preparations to respond to subsequent IRS inquiries.

An Experienced Claim Manager

This unprecedented opportunity will expire upon your corporate tax-filing deadline in 2007.  Many companies may not have the time or expertise to perform the necessary steps or have confidence in the accuracy in their credit being claimed. 

It is recommended that companies act quickly, well before the deadline.  Workload bottlenecks are expected to occur late in 2006 and you must complete the necessary work by your tax return filing date in 2007.

Familiarity with carrier billing formats and reports will be crucial for timely preparation.  Control Point Solutions has extensive experience dealing with carriers, a deep database of report history for current clients and expertise in providing estimated figures for missing, incomplete or ambiguous invoice data to meet IRS standards and scrutiny.  Past settlement performance is critical when considering your solution to FET.  Many vendors are filing claims with no history of success. 

Partner with the Best

Maximize your opportunity for settlement by aligning yourself with the industry leader in telecom expense management.  Currently, over 70 Fortune 500 and three Fortune 10 clients leverage Control Point Solutions’ domain expertise and technology to gain efficiencies and sustainable cost reductions.  Control Point Solutions is the telecom expense management expert with proven results.

For more information or to set up a meeting, contact your Account Manager or click here.

Read more about 2006 FET Returns

See us in Business Week's Technology Issue: Telecom Expense Management: Keeping a growing Expense Under Control