N.Y. Attorney General Claims Sprint Owes $300 Million
The attorney general for the state of New York has sued Sprint, the wireless carrier, for allegedly failing to pay sales taxes for the last seven years.
According to a statement released today, state attorney general Eric T. Schneiderman claims Sprint underpaid and under-collected millions of dollars in state taxes.
The issue between the state of New York and Sprint involves fees collected for monthly access plans. New York has a law that requires mobile carriers, such as Sprint, to collect and pay sales taxes on full monthly charges for service plans. Other mobile carriers, such as AT&T, Verizon and T-Mobile have complied with the law, but Sprint has not paid the taxes since 2005, according to Mr. Schneiderman.
According to other news reports, Sprint claims it has paid all the taxes and does not owe the state of New York $300 million. “This complaint is without merit and Sprint categorically denies the complaint's allegations. We have collected and paid over the New York every penny of sales taxes on mobile wireless services that we believe our customers owe under New York state law.”