Index: apps/app_fax.c
===================================================================
--- apps/app_fax.c	(revision 205726)
+++ apps/app_fax.c	(working copy)
@@ -452,6 +452,7 @@
 				res = 1;
 				break;
 			} else if (parameters->request_response == AST_T38_REQUEST_NEGOTIATE) {
+				ast_debug(1, "T38 request received, accepting\n");
 				if (parameters->version > 0) {
 					/* Only T.38 Version 0 is supported at this time */
 					parameters->version = 0;
@@ -464,11 +465,8 @@
 				/* we only support bit rates up to 9.6kbps */
 				parameters->rate = AST_T38_RATE_9600;
 				ast_indicate_data(s->chan, AST_CONTROL_T38_PARAMETERS, parameters, sizeof(*parameters));
-				/* T38 switchover completed */
+				/* Complete T38 switchover */
 				s->t38parameters = *parameters;
-				ast_debug(1, "T38 negotiated, finishing audio loop\n");
-				res = 1;
-				break;
 			}
 		}
 
@@ -604,7 +602,6 @@
 			struct ast_control_t38_parameters *parameters = inf->data;
 			if (parameters->request_response == AST_T38_TERMINATED || parameters->request_response == AST_T38_REFUSED) {
 				ast_debug(1, "T38 down, terminating\n");
-				res = -1;
 				break;
 			}
 		}