New York State Sues Sprint For Over $300 Million, Carrier Responds Back Says Lawsuit ‘Is Without Merit’

Posted on Apr 20 2012 - 6:20am by Editorial Staff

According to Reuters, 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. The carrier 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. New York Attorney General Eric Schneiderman believes Sprint participated in tax fraud by deliberately not collecting or paying its taxes. Schneiderman quoted as saying “Sprint cost state and local governments over $100 million that could have been used for critical services and much needed resources.” Over which the carrier had taken no time in responding back to a lawsuit filed by the New York state. 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.”

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Editorial Staff at I2Mag is a team of subject experts led by Karan Chopra.