8
"financial and administrative service." In the Matter of
Detariffing of Billing & Collection Servs., 102 FCC2d at 1168.
Therefore, the FCC would not regulate B & C services under Title
II of the Communications Act. Id. at 1169.
In reliance upon the 1986 Detariffing Order, the IRS ruled
in Tech. Adv. Mem. 91-11-001 (Apr. 23, 1989) (the TAM), that B
& C services were not "communication services" for purposes of
section 501(c)(12)(B). The issue in the TAM was whether an
exempt telephone cooperative's revenues, including B & C
revenues, should be treated as member income, nonmember income,
or excludable income under section 501(c)(12)(B). Id. The TAM
chronicled the treatment B & C services had received from the FCC
since the divestiture of AT&T in 1984. At first, the FCC
regulated the rate of return for B & C services that local
cooperatives offered to long-distance carriers. However, in a
1985 Detariffing Notice, the FCC
tentatively concluded that third-party billing and
collection was "essentially a financial and
administrative service," not "inherently a
communications service" and accordingly proposed to
"detariff" billing and collection provided to third
parties. * * *
Id. In 1986, the FCC cemented its conclusion of 1985 and
determined that B & C services were not "inherently a
communications service" under Title II of the Communications Act.
Id. The FCC also required separate accounts for B & C revenues.
Id.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Next
Last modified: May 25, 2011