Accrued Sales Taxes and Regulatory Fees

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

Note 5 - Accrued Sales Taxes and Regulatory Fees

Included in accrued sales taxes and regulatory fees are (i) certain estimated sales and use taxes, regulatory fees and (ii) sales taxes and regulatory fees collected from customers that are to be remitted to taxing authorities. We have been proactively contacting various taxing authorities and voluntarily disclosing potential tax liabilities, and have continually revised what sales taxes and regulatory fees are applicable to our business.  The settlement terms from this voluntarily disclosure program, all of which are subject to audit, have resulted in paying significantly less than the total amounts accrued due to, among other things, offsets allowed, the avoidance of penalties, and contracting for limited look-back periods.

A summary of accrued sales taxes and regulatory fees as of, and changes during the years ended December 31, 2011 and 2010 (in thousands):

	Accrued sales taxes and regulatory fees
January 1, 2010	$	1,083
Collections, net of remittances		270
Settlement payments to taxing authorities		(614	)
December 31, 2010		739
Collections, net of remittances		105
Settlement payments to taxing authorities		(85	)
Refunds to customers		(325	)
December 31, 2011	$	434