Sprint hit with $300 million lawsuit for tax fraud in New York

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Sprint has been slapped with a $300 million lawsuit by New York state
for tax fraud, the NY attorney general’s office announced Thursday. The
carrier allegedly submitted false records that allowed it to underpay
taxes, in the interest of keeping its monthly charges low to “obtain an
advantage over its competitors.”

While Sprint doesn’t top the charts for customer satisfaction, it has
long offered cheaper service plans than its larger competitors:
AT&T and Verizon. According to Eric Schneiderman, NY attorney
general, Sprint failed to correctly collect and pay taxes on the monthly
access charges its customers paid. “Sprint concluded that this practice
would position its calling plans as cheaper than competitors’ plans by
$4.6 million per month, collectively, because of sales taxes not
collected and paid,” states the attorney general’s press release.

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