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Sprint loses appeal, state of New York to seek nearly $400 million from Sprint for unpaid sales tax

Posted: , by Alan F.

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Sprint loses appeal, state of New York to seek nearly $400 million from Sprint for unpaid sales tax
Besides being sued by the U.S. government, accused of charging U.S. agencies too much money for tapping phone calls, Sprint is now being accused by the state of New York for not paying it millions in sales tax. The nation's third largest carrier failed to get an appeals court to toss the case which was instigated by a whistle blower back in 2011. The state is seeking nearly $400 million in unpaid taxes and penalties.

New York's Attorney General Eric Schneiderman claims that Sprint failed to collect and pay the state sale tax for flat-rate access charges on wireless plans. Since July 2005, the amount owed by Sprint was in excess of $100 million and the figure today is $130 million. But under the state's False Claims Act, the government can seek triple the amount of the sales tax shortfall, or close to $400 million.

Sprint said that it was disappointed in the ruling, which now allows the Attorney General's office to proceed with legal action against Sprint. Schneiderman said that Sprint didn't collect the sales tax as part of a nationwide effort to make its data plans less expensive than competitors' plans.

source: Bloomberg

21 Comments
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posted on 03 Mar 2014, 23:47

1. Scott93274 (Posts: 681; Member since: 06 Aug 2013)


Oh crap, Federal and State agencies are ganging up on Sprint. This should be interesting.

posted on 03 Mar 2014, 23:52 1

2. Kishin (Posts: 587; Member since: 30 May 2013)


Hahahahahhh they going broke...

posted on 04 Mar 2014, 00:06 4

3. PapaSmurf (Posts: 7743; Member since: 14 May 2012)


LOL kick me while they're down. Anyone got popcorn near by?

posted on 04 Mar 2014, 00:15 2

4. PapaSmurf (Posts: 7743; Member since: 14 May 2012)


Em*

Apple, fix your damn auto correct.

posted on 04 Mar 2014, 00:17

6. Scott93274 (Posts: 681; Member since: 06 Aug 2013)


I chose to keep quite about your types... Otherwise you'd rip me a new one during our previous conversation.

posted on 04 Mar 2014, 00:21 1

7. PapaSmurf (Posts: 7743; Member since: 14 May 2012)


Typos*

Which conversation are you talking about?

posted on 04 Mar 2014, 00:24

9. Scott93274 (Posts: 681; Member since: 06 Aug 2013)


And there you have it. Lenovo poking fun of Samsung...

posted on 04 Mar 2014, 06:14

12. PapaSmurf (Posts: 7743; Member since: 14 May 2012)


What....?

posted on 04 Mar 2014, 00:15

5. Scott93274 (Posts: 681; Member since: 06 Aug 2013)


lol, they didn't pay their taxes so they could provide less expensive data plans. That's freakin hysterical. Yeah, I'll pull up a seat beside you and order a couple pizzas.

posted on 04 Mar 2014, 00:22 3

8. PapaSmurf (Posts: 7743; Member since: 14 May 2012)


Fun fact: pepperoni is my favorite.

posted on 04 Mar 2014, 00:40

11. Salazzi (Posts: 155; Member since: 17 Feb 2014)


Get some sausage and chicken (on separate pizzas of course) along with the pepperoni, and I'll bring the coke n pepsi.

posted on 04 Mar 2014, 00:32 1

10. Mrmark (Posts: 132; Member since: 26 Jan 2013)


BREAKING NEWS T-MOBILE IS SEEKING TO BE THE LEADING CARRIER IN THE SOFTBANK SPRINT MERGE!!! WOW ! JK

posted on 04 Mar 2014, 09:48

18. CEMIII (Posts: 110; Member since: 26 Jun 2013)


Wow I thought the old CEO ripped Sprint with the Nextel merger.
But Hesse & his infamous solo commercials_ Yet another Sprint CEO out for self. Not suprising.
We shall see what Softbank does now. They have the keys & can replace anybody they want. I seriously hope they put some check & balances in place.
Seriously how can they do business correctly when the CEO is cooking the books. Wait its all to keep rates low for the customers.

Uttt-Oooo their goes SIMPLY EVERYTHING & UNLIMITED DATA.

posted on 04 Mar 2014, 06:27

13. o0Exia0o (Posts: 343; Member since: 01 Feb 2013)


I dont thank they will be buying T-Mo at this rate.

posted on 04 Mar 2014, 06:37

14. pookiewood (Posts: 566; Member since: 05 Mar 2012)


Dang I actually like Sprint as a company. Yeah the service isn't the best but the customer service was always good IMO. I did leave them for the 920 but had they have gotten it I'd probably still be a Sprint customer.

posted on 04 Mar 2014, 09:55

19. CEMIII (Posts: 110; Member since: 26 Jun 2013)


So true I just left because I got the ICON & probably would have stayed as well.
Funny how Sprint still doesn't carry a Nokia device, when they used to in the past. what gives on that issue. Forget personal vendettas get what the people want. That's what keeps customers.
AT&T is always on point Vz & T-mobile may be slow but they still get the devices.
But I must admit Vz has outstanding 4G coverage in the MD/DC/VA area. It topples Sprint's in my neighborhood.

posted on 04 Mar 2014, 06:55 1

15. Slammer (Posts: 992; Member since: 03 Jun 2010)


Doesn't it seem strange that NY is the only state that is presumably seeking financial restitution for this?

Remember, this is the same state that commands the highest tax burden in the country yet has the nasty habit of mysteriously losing money that gets collected and not redirected to the legitimate expenditures that it was allocated for.

John B.

posted on 04 Mar 2014, 08:39

16. kabukijoe (Posts: 67; Member since: 06 Mar 2010)


Well, all that welfare money has to come from somewhere.

posted on 04 Mar 2014, 08:43

17. tokuzumi (Posts: 264; Member since: 27 Aug 2009)


This will really hurt their Now network upgrades. They had some good momentum over the last few years. I've heard good things.

/sarcasm

posted on 04 Mar 2014, 15:34

20. simrob (Posts: 4; Member since: 06 Aug 2012)


sprint has been billing me for NY State Sales Tax 4.16 along with Oswego City sales tax 4.16 .So what are they doing with the money if there not giving it to the City and state.

posted on 05 Mar 2014, 16:11

21. technitude (Posts: 21; Member since: 19 Dec 2013)


That's the weird thing to me, New York is claiming they did not collect it from customers. In the beginning, this case seemed smoky. The NYAG is claiming that Sprint under-reported revenue it was earning in New York. They claimed that in New York alone, Sprint was getting $20Million more a month than they claimed. I still have not seen where New York has proved that to be true, it seems like a guestimate. In any case, the party that has brought this up would be entitled to $100Million if New York gets it all. So, New York businesses should expect tons of these cases.

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