The Verge - New York State vs. Sprint: the $300 million tax evasion lawsuit

Sprint: New York tax fraud lawsuit 'is without merit'

2012-04-19T18:00:15Z

Sprint wasted no time in responding to a lawsuit filed by the state of New York, alleging the company failed to bill its customers for more than $100 million in taxes. The company has issued a statement that flatly refutes the charges levied:

"This complaint is without merit and Sprint categorically denies the complaint's allegations. We have collected and paid over to New York every penny of sales taxes on mobile wireless services that we believe our customers owe under New York state law. With this lawsuit, the Attorney General's office is claiming New York consumers, who already pay some of the highest wireless taxes in the country, should pay even more. We intend to stand up for New York consumers' rights and fight this suit."

New...

State of New York sues Sprint for more than $300m, claims carrier failed to bill customers for $100m in taxes

2012-04-19T15:53:00Z

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...