§  54.713   Contributors' failure to report or to contribute.

   (a) A contributor that fails to file a Telecommunications Reporting
   Worksheet and subsequently is billed by the Administrator shall pay the
   amount for which it is billed. The Administrator may bill a contributor
   a separate assessment for reasonable costs incurred because of that
   contributor's filing of an untruthful or inaccurate Telecommunications
   Reporting Worksheet, failure to file the Telecommunications Reporting
   Worksheet, or late payment of contributions. Failure to file the
   Telecommunications Reporting Worksheet or to submit required quarterly
   contributions may subject the contributor to the enforcement provisions
   of the Act and any other applicable law. The Administrator shall advise
   the Commission of any enforcement issues that arise and provide any
   suggested response. Once a contributor complies with the
   Telecommunications Reporting Worksheet filing requirements, the
   Administrator may refund any overpayments made by the contributor, less
   any fees, interest, or costs.

   (b) If a universal service fund contributor fails to make full payment
   on or before the date due of the monthly amount established by the
   contributor's applicable Form 499-A or Form 499-Q, or the monthly
   invoice provided by the Administrator, the payment is delinquent. All
   such delinquent amounts shall incur from the date of delinquency, and
   until all charges and costs are paid in full, interest at the rate
   equal to the U.S. prime rate (in effect on the date of the delinquency)
   plus 3.5 percent, as well as administrative charges of collection
   and/or penalties and charges permitted by the applicable law (e.g., 31
   U.S.C. 3717 and implementing regulations).

   (c) If a universal service fund contributor is more than 30 days
   delinquent in filing a Telecommunications Reporting Worksheet Form
   499-A or 499-Q, the Administrator shall assess an administrative
   remedial collection charge equal to the greater of $100 or an amount
   computed using the rate of the U.S. prime rate (in effect on the date
   the applicable Worksheet is due) plus 3.5 percent, of the amount due
   per the Administrator's calculations. In addition, the contributor is
   responsible for administrative charges of collection and/or penalties
   and charges permitted by the applicable law (e.g., 31 U.S.C. 3717 and
   implementing regulations). The Commission may also pursue enforcement
   action against delinquent contributors and late filers, and assess
   costs for collection activities in addition to those imposed by the
   Administrator.

   (d) In the event a contributor fails both to file the Worksheet and to
   pay its contribution, interest will accrue on the greater of the
   amounts due, beginning with the earlier of the date of the failure to
   file or pay.

   (e) If a universal service fund contributor pays the Administrator a
   sum that is less than the amount due for the contributor's universal
   service contribution, the Administrator shall adhere to the "American
   Rule" whereby payment is applied first to outstanding penalty and
   administrative cost charges, next to accrued interest, and third to
   outstanding principal. In applying the payment to outstanding
   principal, the Administrator shall apply such payment to the
   contributor's oldest past due amounts first.

   [ 72 FR 54219 , Sept. 24, 2007]