[eve6er69]

saw this on cnn. if it proves true its another bad story for sprint.

NEW YORK (CNNMoney) -- New York's attorney general filed a tax fraud lawsuit against Sprint Nextel on Thursday, accusing the wireless carrier of intentionally underpaying sales tax in the state for seven years.
Starting in 2005, Sprint stopped collecting and paying New York sales tax on around 25% of the revenue from its fixed-price monthly cell phone plans, according to New York Attorney General Eric Schneiderman.

Its goal, he says, was to give itself a price advantage over its rivals. Verizon (VZ, Fortune 500), AT&T (T, Fortune 500), T-Mobile and MetroPCS (PCS) all collect the taxes Sprint is accused of shirking, according to Schneiderman.
He says that Sprint's "unlawful actions" cost the state more than $30,000 per day -- a $100 million underpayment, in total. Under New York state law, Sprint could be on the hook for as much as $300 million, plus penalties, if it is found liable.
"Sprint did not correct its sales tax practices when it was informed of its illegality, and it has not corrected them even today," a statement from Schneiderman's office alleges.
Shares of Sprint Nextel (S, Fortune 500) fell 5% on the news.
The company released a statement saying the case is "without merit."
Sprint says it "categorically denies" the allegations, and added: "We have collected and paid over to New York every penny of sales taxes."
If the state's case is proven and back taxes are owed, Sprint customers could technically be on the hook, a point the state makes in its lawsuit. But Schneiderman's office made clear that wants the company itself, not its customers, to foot the bill.
It's also seeking to let Sprint's current New York customers end their contracts early without having to pay termination fees.

[spencerdl]

Somehow, someway...customers will PAY........just my opinion

[mzceetee]

Somehow, someway...customers will PAY........just my opinion

EXACTLY! it's going to be squeezed within our bill as hidden fee.....

[eve6er69]

I'm sure the fcc will scrutinize every raise they do to make sure its justified so that you don't have to.

Well I would hope........lol

Sent from my BlackBerry Bold 9900 using Tapatalk

[kg4icg]

Basically the State of New York is fishing for money to get out of financial trouble and will extort it from whoever they can scare them into paying them. Liberals run amock in New York.

[eve6er69]

Basically the State of New York is fishing for money to get out of financial trouble and will extort it from whoever they can scare them into paying them. Liberals run amock in New York.

No need for a political debate here.

Sent from my BlackBerry Bold 9900 using Tapatalk

[Mystic205]

very interesting,

i dont see it, but very interesting.. i cannot imagine something as simple as sales tax, which is on every bill, is missing on one of the tax heavy states..The customers themselves however have the end responsibility to pay any back taxes... and i mean those in NY... not all Sprints customers,.

saw this on cnn. if it proves true its another bad story for sprint.

NEW YORK (CNNMoney) -- New York's attorney general filed a tax fraud lawsuit against Sprint Nextel on Thursday, accusing the wireless carrier of intentionally underpaying sales tax in the state for seven years.
Starting in 2005, Sprint stopped collecting and paying New York sales tax on around 25% of the revenue from its fixed-price monthly cell phone plans, according to New York Attorney General Eric Schneiderman.

Its goal, he says, was to give itself a price advantage over its rivals. Verizon (VZ, Fortune 500), AT&T (T, Fortune 500), T-Mobile and MetroPCS (PCS) all collect the taxes Sprint is accused of shirking, according to Schneiderman.
He says that Sprint's "unlawful actions" cost the state more than $30,000 per day -- a $100 million underpayment, in total. Under New York state law, Sprint could be on the hook for as much as $300 million, plus penalties, if it is found liable.
"Sprint did not correct its sales tax practices when it was informed of its illegality, and it has not corrected them even today," a statement from Schneiderman's office alleges.
Shares of Sprint Nextel (S, Fortune 500) fell 5% on the news.
The company released a statement saying the case is "without merit."
Sprint says it "categorically denies" the allegations, and added: "We have collected and paid over to New York every penny of sales taxes."
If the state's case is proven and back taxes are owed, Sprint customers could technically be on the hook, a point the state makes in its lawsuit. But Schneiderman's office made clear that wants the company itself, not its customers, to foot the bill.
It's also seeking to let Sprint's current New York customers end their contracts early without having to pay termination fees.

[papped]

State customers may owe the taxes, but Sprint is still liable because they are the ones that forward the taxes and fees to the customer.

Regardless, it will p*** off Sprint customers anyways. If Sprint tries to collect from their customers because they screwed up, they will lose customers and customer satisfaction...