New York Goes After Sprint-Nextel For Sales Tax Underpayment
- Apr 19, 2012 | Susan McLain

Sprint-Nextel Corporation is being sued by New York. New York Attorney General Eric Schneiderman has filed a claim that Sprint “…under-collected and underpaid $100 million in sales taxes to keep prices down.”
Mobile phone companies doing business in New York are required to collect and pay sales taxes on the “…full amount of their monthly access fees for calling plans.” New York has required this since 2002, but “Schneiderman says Sprint since 2005 underpaid the tax and submitted false records.”
The suit is filed under the “False Claims Act” which can carry penalties and fees that would triple the amount owed. The Attorney General states that Sprint was aware of the issue and “…has not changed its practice, while competitors Verizon, AT&T, T-Mobile, and MetroPCS pay the tax.”
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