Sec.  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]