A New York Supreme Court judge has denied Sprint’s request to dismiss a $300 million lawsuit that claims the carrier knowingly failed to pay New York sales taxes, Bloomberg reported. New York Attorney General Eric Schneiderman accused Sprint of not collecting and paying sales taxes on some of its flat-rate access plans. The company’s neglect allegedly cost state and local governments more than $100 million. Wireless carriers must collect and pay sales taxes for plans that have a set number of minutes and a fixed monthly charge. Schneiderman alleges that Sprint didn’t pay some of its taxes to stay competitive with rivals AT&T and Verizon, both of which paid their New York sales tax bills in full.
Sprint faces $300 million lawsuit for alleged tax fraud
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