A Word About Taxes

Cytracom prides itself on total pricing transparency.  Cytracom does not attract customers based on initial deep discounts and gimmicks. Instead, customers come to Cytracom because they can expect high quality VoIP with excellent customer service.

Cytracom employs tax attorneys to ensure that customers are not underpaying taxes, which could lead to huge headaches down the road. Taxes vary by state, region, and even city.  Cytracom works around the clock to make sure all tax regulations are met.

Taxes that are collected and remitted by Cytracom are on the initial proposal and all subsequent bills. Customers will not get sticker shock when their first "real bill" arrives. 

The second page of every monthly invoice explains each of the taxes and fees collected by Cytracom:

Federal USF Charges

The Federal Universal Service Fund helps to make phone service affordable and available to all Americans, including consumers with low incomes; those living in areas where the costs of providing telephone service is high; schools and libraries; and rural health care providers. The FCC delegates the administration of the FUSF to the Universal Service Administrative Corporation (USAC). Each quarter, USAC announces and the FCC approves a “contribution factor.” The contribution factor is a percentage of the total interstate/international revenue for which each interstate carrier is responsible for contributing to the FUSF in order to sustain the Federal Universal Service System. As permitted by FCC regulations, the Company has opted to bill FUSF as a separate line item. Consistent with such regulations, the Company only bills FUSF line item charges in an amount equal to the quarterly contribution factor currently in effect. This is a permissible pass-through fee but is not a tax or charge mandated by the government. 

Federal Cost Recovery Fee (CRF)

A charge equal to .0275 (2.75%) percent of charges, excluding taxes, appearing on a Customer’s invoice will apply to services subject to direct regulation by the FCC. This charge is being imposed to recover amounts incurred by Cytracom for fees, contributions and/or charges associated with telecommunications services for the sight and hearing impaired, local number portability and North American Numbering Plan administration, and administrative costs, fees and expenditures related to compliance with Federal regulatory programs and annual FCC regulatory fees. This is a permissible pass-through fee but is not a tax or charge mandated by the government. For more information on the various programs supported by the CRF, please see below.

Federal Telecommunications Relay Services (TRS) Fund

The Telecommunications Relay Services (“TRS”) Fund was established by the FCC in 1993 to reimburse TRS providers for the cost of providing interstate TRS services. TRS services are telephone transmission services that provide hearing or speech challenged individuals with the ability to use a traditional telephone. Under the FCC’s rules, Cytracom must contribute a percentage of its interstate and international end-user telecommunications revenues to the TRS Fund. And, Cytracom may collect these fees from customers. The contribution percentage varies annually. 

Local Number Portability Administration (LNPA)

Local Number Portability (LNP) is a customer’s ability to keep existing phone numbers when switching to another service provider. Cytracom must provide LNP, as well as contribute to the Commission’s LNPA program, designed to diffuse the costs of administering LNP. Cytracom pays a proportionate share of the LNP costs in each region in which it operates and has customers. Cytracom collects a fee from customers to offset its LNP costs. This fee varies frequently by region. 

North American Numbering Program Administration (NANPA)

The North American Numbering Plan (“NANP”) is an integrated telephone numbering plan for the Public Switched Telephone Network (“PSTN”) serving multiple countries including the United States and its territories. It is administered by the North American Numbering Plan Administration (“NANPA”). Under the Commission’s rules, Cytracom must contribute to the costs of numbering administration. Contributions are based on a percentage of Cytracom’s revenues from customers using international, intrastate and interstate services. The percentage varies annually.

Annual Regulatory Fee

Cytracom must pay an annual regulatory fee to the Commission. This fee varies annually. Cytracom collects this fee from customers.

State and Local Taxes

States, counties, cities, and special taxing districts may assess various taxes on Cytracom’s services and/or phone/hardware purchases. These may include specific taxes on communications services, sales, use and excise taxes, gross receipts taxes, property taxes and others. Cytracom collects applicable taxes and remits them to the taxing authorities.

State and Local 911/E911/Regulatory Fees

Cytracom Cost Recovery Surcharge

This surcharge of $2.90, charged on each extension line item, helps Cytracom to recover our costs of maintaining compliance with various federal and or state, county and locality programs or agencies. This surcharge is not mandated by the government or any other entity. It should also not be confused with the CRF which, by contrast, is collected to directly offset the funds remitted by Cytracom to those respective agencies.

If any questions arise, please don't hesitate to contact Cytracom at 1-877-411-2987.

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