Customer story

Preferred Long Distance calls on Avalara to manage tax complexity

Results

Improved processes
Increased compliance
Tax expertise
Enabled growth

Summary

Results

  • Improved processes
  • Increased compliance
  • Tax expertise
  • Enabled growth

Tax challenges

  • Compliance risk
  • Process inefficiency
  • Tax complexity


Products used

Avalara AvaTax for Communications
Delivers tax calculations on a broad array of communications transactions by directly connecting to your current billing or ERP system, or to an in-house build via API.

Avalara Returns for Communications  
Transaction tax returns preparation, filing, and remittance paired with a centralized online portal for easy tax compliance management with a high degree of transparency.


Benefits

  • Streamlined tax calculation and filing for the communications industry
  • Growth made easier by calculation and filing automation
  • Access to experts for regulation and compliance confidence

Industry type

Telecommunications
Meet customer needs and stay compliant when you’re collecting sales tax or exemption certificates.

Company overview


Preferred Long Distance (PLD) was established in 1995, making it one of the oldest telecommunications carrier resellers in the business. PLD offers long-distance, voice over IP (VoIP), and advanced wireless technology to small businesses that require enterprise-grade features and functions.

Tax challenges


With customers from Florida to California, PLD is obligated to collect a multitude of taxes, surcharges, and fees at the federal, state, and local levels. “Each jurisdiction has its own complex tax computations,” says CEO Jerry Nussbaum. Disparate filing deadlines add to the complexity. Jerry explains, “Some are monthly, some are quarterly, some are semiannual … it’s a lot to keep up with.”

This combination of tax transaction volume and complexity creates a huge burden for PLD. As a former certified public accountant, Jerry knew when he founded PLD he didn’t want to carry that burden himself. “I wanted to behave like a telecommunications company, not like an accounting firm,” he says. 

 

Why Avalara?


“We found that Avalara has the ability to keep up with all those changes,” says Jerry. “We’ve used them right from the very beginning.” Avalara AvaTax for Communications helps PLD calculate the morass of taxes, fees, and surcharges, while Avalara Returns for Communications ensures that PLD’s filings are highly accurate and timely — to the tune of about 1,000 returns per month. 

“The efficiency is excellent,” says Jerry. “They do all the returns, mail out the checks, reconcile the bank account, answer any questions that arise from the taxing authorities — all that is taken off our plate, so we can devote our time to serving our customers.”

 

Tax challenges

  • Compliance risk
  • Process inefficiency
  • Tax complexity


Products used

Avalara AvaTax for Communications
Delivers tax calculations on a broad array of communications transactions by directly connecting to your current billing or ERP system, or to an in-house build via API.

Avalara Returns for Communications
Transaction tax returns preparation, filing, and remittance paired with a centralized online portal for easy tax compliance management with a high degree of transparency.


Benefits

  • Streamlined tax calculation and filing for the communications industry
  • Growth made easier by calculation and filing automation
  • Access to experts for regulation and compliance confidence

Industry type

Telecommunications
Calculate taxes and file returns for VoiP, IoT, telecom, streaming, and cable products and services.

“We’ve never had a penalty assessed against us. Having Avalara allows me not to have any concern at all.”

Jerry Nussbaum
CEO

“We’ve never had a penalty assessed against us. Having Avalara allows me not to have any concern at all.”

Jerry Nussbaum
CEO

Results


Compliance isn’t something Jerry has to worry about now. “We’ve been audited a few times by jurisdictions,” he says. “In every case, we turned to Avalara to provide the necessary data, and in every case we’ve been found to be compliant. We’ve never had a penalty assessed against us. Having Avalara allows me not to have any concern at all.” 

In addition, Jerry relies on Avalara for expertise and guidance. “When regulations change, particularly at the federal level, the detailed information isn’t always clear,” he explains. “We’ll call Avalara and get some guidance on how to do it, rather than guessing. It’s very easy, and they’re very helpful.” 

How would PLD manage all of this complexity without Avalara? “It would require a lot of hours, on our part,” Jerry says. “We’d have to hire people to fill those roles. This way we avoid all of that, but at the same time we get the expertise from Avalara, which is quite valuable.”

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