For organizations such as healthcare, education and not-for-profits, taxes can be eliminating dependent on the exempt status. But, while Orion views telecom bills for these organizations, we often find taxes charged incorrectly. Below are some tips and tricks if you are exempt from these additional charges.
- Whenever an order is placed for new services, make sure the person you are working with understands you are tax exempt even if you are adding services to a currently exempt account. We have found in the past that taxes have been added back to the entire account if this statement is not made.
- Make sure that you have the tax exempt certificates readily available to provide to the carrier should they be requested. Ask for verification the certificates have been received and applied accordingly.
- Even though an organization may be federally tax exempt for most circumstances, this does not always apply to telecom services. In order to be federally tax exempt, you must have a 501(c) classification.
- Check your bills periodically to confirm taxes have not been reapplied. There are limits to how far back a telephone company will credit you back for these charges so resolving this quickly can make a big difference.
Depending on charges federal, state and local taxes, misapplied taxes can add up to 10% to your telecom bills. This can be a significant amount annually and becomes much more difficult to resolve as time passes.