Sprint Faces $300 Million New York Tax Fraud Suit

Photo courtesy of the Kansas City Business Journal
Photo courtesy of the Kansas City Business Journal

Sprint Nextel Corp. will face a lawsuit for $300 million brought by the state of New York claiming the company deliberately failed to pay sales taxes. A New York Supreme Court denied Sprint’s bid to dismiss the case in the ruling dated June 27, and ordered lawyers to appear at a hearing July 24.

New York Attorney General Eric Schneiderman claims Sprint didn’t collect and pay some sales taxes on flat-rate access charges for wireless calling plans, costing state and local governments more than $100 million. Schneiderman now seeks three times Sprint’s alleged underpayment plus penalties under the state’s false claims act.

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