SEC ends investigation into Sprint's sales tax collection

The SEC has decided that it will not initiate enforcement action against Sprint after a nearly year-long investigation.

Marguerite Reardon/CNET

Sprint has one less foe in its ongoing battle over New York sales taxes.

The company on Monday released a Securities and Exchange Commission (SEC) filing confirming that the SEC has dropped its investigation into the carrier's collection of sales taxes without attempting to enforce any action. The SEC dropped the investigation last month, according to Sprint, after a nearly year-long inquiry.

The trouble started for Sprint in April 2012 when the New York Attorney General's Office filed a complaint against Sprint arguing that it failed to pay more than $100 million in New York State sales tax. The Attorney General's office, which wants more than $300 million in damages , argues that Sprint should be forced to pay sales tax on the entire wireless bill. The carrier, however, argues that it should only be charged on calls placed and received in the state.

In its SEC filing, Sprint said that it believes the state's case is without merit and plans to fight it until the bitter end.

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About the author

Don Reisinger is a technology columnist who has covered everything from HDTVs to computers to Flowbee Haircut Systems. Besides his work with CNET, Don's work has been featured in a variety of other publications including PC World and a host of Ziff-Davis publications.

 

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