Sprint seeks dismissal of NY suit alleging tax fraud

The wireless carrier filed a motion to dismiss a lawsuit that claimed it dodged $100 million in taxes.

Sprint Nextel today filed a request to dismiss a lawsuit alleging it had stiffed New York out of $100 million in taxes.


Sprint filed its request to a New York state court, arguing that its practices don't violate New York law.

In April, New York Attorney General Eric Schniederman filed his lawsuit against Sprint. He sought a penalty of $300 million for the company's alleged failure to pay taxes.

Sprint at the time denied the allegations. The company declined to comment beyond the filing today.

The company, however, noted in its filing that New York was attempting to punish Sprint for failing to collect a pass-through sales tax from New York customers on the interstate portion of its flat-rate monthly wireless plans. It noted that Schniederman cites one provision out of context in his lawsuit, and ignores other laws.

CNET contacted the New York attorney general's office for comment. We'll update the story once we get a response.

About the author

Roger Cheng is the executive editor in charge of breaking news for CNET News. Prior to this, he was on the telecommunications beat and wrote for Dow Jones Newswires and The Wall Street Journal for nearly a decade. He's a devoted Trojan alum and Los Angeles Lakers fan.


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