ALBANY (AP) -- New York Attorney General Eric Schneiderman is suing Sprint-Nextel Corp., claiming it under-collected and underpaid $100 million in sales taxes to keep prices down.
The tax suit, the first filed under the state's False Claims Act, could require the company to pay triple the amount it is accused of underpaying, or $300 million. Schneiderman says Sprint was informed and has not changed its practice, while competitors Verizon, AT&T, T-Mobile, and MetroPCS pay the tax.
Since 2002, New York tax law has required mobile phone companies to collect and pay sales taxes on the full amount of their monthly access fees for calling plans. Schneiderman says Sprint since 2005 underpaid the tax and submitted false records.
Sprint spokesman John Taylor says the company is reviewing the complaint.
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