New York State Sues Sprint Nextel Corporation For More Than $300 Million Over Taxes-Reuters

Reuters reported that the state of New York sued Sprint Nextel Corporation for more than $300 million, accusing the Company of tax fraud by deliberately not collecting or paying millions of dollars of taxes for its cell phone service. Sprint, 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. Schneiderman filed his complaint, based on whistleblower information, in New York State Supreme Court and said the case is the first tax enforcement action filed under the state's False Claims Act. The lawsuit seeks three times the amount of underpaid tax, plus penalties.