Sprint must face $300M lawsuit for underpaid taxes in New York

Sprint (NYSE: S) cannot get away from a $300 million fraud lawsuit filed by the New York attorney general and will need to face it in court. The lawsuit alleges that Sprint deliberately under-collected and underpaid millions of dollars in state and local taxes on its flat-rate wireless data plans. If Sprint is found liable in the suit, the company could have to pay the underpaid sales taxes plus penalties totaling more than $300 million. The Court of Appeals in New York, the state's highest court, in a 4-1 decision rejected Sprint's contention that a 2002 state law imposing sales taxes on interstate wireless services violated the U.S. Constitution, according to Reuters. The lawsuit was first filed against Sprint in 2012 and the carrier has sought to get it tossed out since then, with Sprint losing before an appeals court in the state in February 2014. The case was put on hold pending the outcome of Sprint's appeal. A Sprint spokesman did not immediately respond to a request for comment. Article

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