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

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Sprint has responded to the lawsuit from the State of New York, denying the claim that the company has failed to pay over $100 million in taxes.

sprint iphone
sprint iphone

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 York Attorney General Eric Schneiderman has said that Sprint has not collected or paid sales taxes on its flat-rate access charges, and has submitted false records and statements to the state. New York is suing the company for $300 million, three times the amount allegedly underpaid.