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

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

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21 Comments

1. Scott93274

Posts: 6040; Member since: Aug 06, 2013

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

2. Kishin

Posts: 706; Member since: May 30, 2013

Hahahahahhh they going broke...

3. PapaSmurf

Posts: 10457; Member since: May 14, 2012

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

4. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Em* Apple, fix your damn auto correct.

6. Scott93274

Posts: 6040; Member since: Aug 06, 2013

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

7. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Typos* Which conversation are you talking about?

9. Scott93274

Posts: 6040; Member since: Aug 06, 2013

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

12. PapaSmurf

Posts: 10457; Member since: May 14, 2012

What....?

5. Scott93274

Posts: 6040; Member since: Aug 06, 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.

8. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Fun fact: pepperoni is my favorite.

11. Salazzi

Posts: 537; Member since: Feb 17, 2014

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

10. Mrmark

Posts: 400; Member since: Jan 26, 2013

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

18. CEMIII

Posts: 110; Member since: Jun 26, 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.

13. o0Exia0o

Posts: 903; Member since: Feb 01, 2013

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

14. pookiewood

Posts: 631; Member since: Mar 05, 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.

19. CEMIII

Posts: 110; Member since: Jun 26, 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.

15. Slammer

Posts: 1515; Member since: Jun 03, 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.

16. kabukijoe

Posts: 102; Member since: Mar 06, 2010

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

17. tokuzumi

Posts: 1925; Member since: Aug 27, 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

20. simrob

Posts: 8; Member since: Aug 06, 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.

21. technitude

Posts: 263; Member since: Dec 19, 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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