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

The state of New York is suing carrier Sprint for $300 million, alleging that Sprint failed to bill its customers for more than $100 million in taxes over seven years. The company has categorically denied the charges, claiming that they are "without merit," and says it intends to fight the suit.

  • David Pierce

    Apr 19, 2012

    David Pierce

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

    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:

    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.

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  • Nathan Ingraham

    Apr 19, 2012

    Nathan Ingraham

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

    Sprint Flatiron Logo
    Sprint Flatiron Logo

    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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