It is common to think that once your contract has been executed, your job is done. Not so. Telecom billing is notoriously inaccurate, and perhaps not surprisingly, the vast majority of billing errors favor the carrier. In addition, it is not unusual to find that other hard-fought clauses – such as limitations on taxes, billing guarantees and rate review opportunities – are conveniently disregarded, unless the customer makes sure that doesn’t happen.
LB3 has successfully assisted customers in ensuring that the contract rights they have negotiated are being protected throughout the life of the contract. Its skills have proven particularly useful to consulting firms that have run out of non-legal options in their pursuit of a recalcitrant carrier on behalf of an enterprise client. Whether you have recently implemented a new contract/service or are looking for a mid-term assessment, LB3 can help ensure that you are maximizing the benefits of your contract. In particular, LB3’s expertise in identifying opportunities for tax refunds and abatement, as further described below, has helped its clients to recover tens of millions of dollars in refunds.
State and Local Tax and Fee Refunds and Abatement
In conjunction with third-party billing analysts (serving as an independent consultant), LB3 reviews wireless and wireline carrier contracts and invoices to identify anomalies in carrier surcharge and regulatory fee collection practices, and anomalies in state and local tax laws pursuant to which various surcharges, fees, and taxes have been misapplied. After identifying these opportunities, LB3 pursues the appropriate refund and seeks to cause the carriers suppress these fees and taxes on a going forward basis. LB3’s experience analyzing taxes imposed in telecom contracts and assisting clients with refund claims when and where they are misapplied has generated millions in savings and refunds for clients.
Telephone Excise Tax Refund Claims
LB3, by prevailing in refund lawsuits in four Circuit Courts of Appeals and the Court of Claims, is the law firm that convinced the IRS to finally stop misapplying the federal excise tax on long distance service. Not only did the IRS stop applying the tax beginning on August 1, 2006, the Service paid millions of dollars in refunds and interest to LB3’s enterprise clients. And, thanks to LB3’s efforts the average American family received a $50 refund on their 2006 tax return—dinner’s on us!
LB3 has also recovered millions of dollars in telephone excise tax refunds on behalf of distributors of prepaid telephone cards. We are expert in filing refund claims with the IRS and prosecuting these refund claims through audit (working with the clients’ accountants, where necessary) and payment.