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certified areas granted by the State Corporation Commission of
Kansas (KCC). As a cooperative corporation, petitioner operates
at cost by allocating to its members any net margins in the form
of capital credits each year. During the taxable years,
petitioner provided telephone service to approximately 3,500
members, who were located across approximately 2,300 square miles
of central and western Kansas.
The billing and collection services (B & C services) consist
of the following:
a. Recording. Petitioner records data with respect to
members' long-distance calls, such as the date and time when the
call is made, the destination of the call, and the duration of
the call.
b. Billing and Collection. Petitioner sends a single
monthly telephone bill to each member that includes 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. In the event
that one of petitioner's members fails to make payment on its
long-distance telephone bill, petitioner is permitted to
disconnect the telephone service of the nonpaying member under
rules of the KCC.
c. Inquiry. Petitioner answers inquiries from its members
with respect to long-distance calls, and resolves questions and
concerns regarding their long-distance telephone bills, calls,
and services.
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Last modified: May 25, 2011