[Universal Service Fee Surcharge]
B-279796
Published: Jan 04, 1999. Publicly Released: Jan 04, 1999.
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Highlights
GAO commented on the propriety of charging the Army an Universal Service Fee for telecommunications services. GAO held that telecommunications vendors may charge the Army an Universal Service Fee to recover their universal service contributions. Since the universal service contributions arise as a result of federal, not state, law, the federal government may not claim immunity from taxation. A pending legal challenge to the requirement of the Telecommunication Act of 1996 does not compel a conclusion that the Army may not pay the fees assessed by carriers to recover the amounts of their universal service contributions.