State of New York sues Sprint for more than $300m, claims carrier failed to bill customers for $100m in taxes
Sprint reportedly failed to bill its customers for more than $100 million in taxes over the course of seven years and is being sued by New York for $300 million. According to Reuters, New York Attorney General Eric Schneiderman believes Sprint participated in tax fraud by deliberately not collecting or paying its taxes and is seeking three times the amount underpaid, plus additional damages. Specifically, Sprint is accused of not collecting and paying sales taxes on flat-rate access charges for its wireless calling plans; Sprint is said to have repeatedly submitted false records and statements to New York. Schneiderman also believes that Sprint didn't pay taxes specifically to make its service less expensive and lure customers from AT&T and Verizon, and was quoted as saying "Sprint cost state and local governments over $100 million that could have been used for critical services and much needed resources."

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