“The state of New York on Thursday sued Sprint Nextel Corp for more than $300 million, accusing the company of tax fraud for deliberately not collecting or paying millions of dollars of taxes for its cell phone service,” Karen Freifeld reports for Reuters.
“Sprint, the third-biggest U.S. mobile service provider, failed to bill customers for more than $100 million in taxes for its wireless services over seven years, according to New York Attorney General Eric Schneiderman,” Freifeld reports. “Schneiderman filed his complaint, based on whistleblower information, in New York State Supreme Court on Thursday, and said the case is the first tax enforcement action filed under the state’s False Claims Act.”
Freifeld reports, “The lawsuit seeks three times the amount of underpaid tax, plus penalties. ‘Everyone else had no trouble figuring out what the tax law was, except Sprint,’ Schneiderman said on a telephone press conference.”
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