108 T.C. No. 23
UNITED STATES TAX COURT
GOLDEN BELT TELEPHONE ASSOCIATION, INC., Petitioner v.
COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 21677-95. Filed June 16, 1997.
P is a rural telephone cooperative corporation
that operates at cost. In addition to local telephone
service it provides its members with long-distance
service through connection with long-distance or
interstate (interexchange) carriers. P performs so-
called "billing and collection" (B & C) services in
respect of calls placed through such carriers. The
B & C services consist of recording data with respect
to members' long-distance calls, such as date, time,
destination, and duration of each call, answering and
resolving questions of members relating to their long-
distance bills, etc., and sending a single monthly
telephone bill to each member including charges for
both local and long-distance calls. Upon collection of
such charges it remits to the interexchange carrier an
appropriate portion of the amount paid for long-
distance calls. By retaining the remainder it is thus
compensated by the long-distance carrier for providing
B & C services.
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