The Communications Assistance for Law Enforcement Act (CALEA)
Passed in 1994, the Communications Assistance for Law Enforcement Act (CALEA) requires all telecommunications carriers to allow for wiretapping over their networks.  Furthermore, call records must be made accessible when necessary, and the surveillance must be undetectable by the subjects of interest. 
E911
With E911, emergency personnel cannot automatically determine the exact location of the caller.  E911 relies on th VoIP subscriber to provide an address where emergency personnel should be directed.  The efficacy of an emergency response depends, in large part, upon the accuracy of the information provided by the VoIP subscriber.  Since VoIP service can be used wherever there is a high speed connection, physical locations can vary.  Therefore, the accuracy of the address is paramount.
Fax
In the past, the inability to send faxes has been a major pitfall of VoIP service.  Presently, many providers offer dedicated fax lines.  Also, faxes may be sent by another method.  Normally, VoIP lines operate at speeds to high for proper fax functionality.  By making adjustments to the baud rate, it is possible to send faxes. 
History
Predecessors of today's VoIP applications appeared in the mid 1990's.   Early communications occurred via PC to PC, and both users had to utilize the same software.  Basic sound cards, microphones, and speakers were the tools of the trade.  Call quality was sketchy at best because of slow connection speeds, since broadband was not widely available.
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VoIP Overview

VoIP (a.k.a. internet phone, broadband phone, and digital phone) works by switching voice conversations into data packets.  The packets are sent over the internet, taking the fastest route to the final destination.  The packets are then converted back into an analog signal.  In earlier applications, this process was performed with computer resources, limiting VoIP usage.  With the advent of external switching devices, VoIP became less costly and more accessible.  Today VoIP has proliferated into the mainstream residential market.  The average person has at the very least heard some mention of the terms "VoIP" or "internet phone".  However, it will take some time before VoIP is commonplace.
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Internet phone (VoIP) allows you to have quality home phone service, cheap international calling, and loads of free features.  You should be able to keep your same phone number. How much can you save?