- VoIP
- Private Communications Services
- Custom calling features
- Text messaging
- Instant messaging
- Ancillary services
- Prepaid and post-paid services
- Paging services
- 800 services
- Covered charges such as monthly service fees, feature charges, equipment rentals, deaf trust surcharges, State PUC users fees, Universal Life Trust Fund, late payment charges
- Charges for non-taxable services billed together with taxable services
- The taxation of new and/or changing technologies and services.
- The application of the Internet Tax Freedom Act to certain internet services, such as T-1 lines
- The taxation of bundled services which include both taxable and non-taxable services
- The potential double taxation of services by various telecommunications providers
- Audit sampling and testing methodologies employed by the Los Angeles Office of Finance
- The taxation of separately itemized services and whether these items should be included in the measure of tax
- Billing, sourcing, and tax coding issues related to the imposition of the tax
- The treatment of exempt sales and the documentation necessary to support the exemption
Additional information about the Los Angeles Communications Users Tax can be found at the Los Angeles Office of Finance website below:
http://finance.lacity.org/content/CUTInformation.htm
In the past few years, the City’s Office of Finance has significantly expanded its tax auditor staff. As a result, we have noticed that the number of CUT audits has risen sharply.