New York Suing Sprint for More Than $300 Million
Everyone has probably heard by now that Sprint is one of the few cellular carriers in the U.S. offering truly unlimited data these days. In that, consumers see a ton of value in their network. One thing you may not have known is that Sprint has also been evading taxes in New York state, failing to bill customers for almost $100 million in taxes over the course of seven years.
New York Attorney General Eric Schneiderman adds his opinion to the mix, elaborating on how Sprint failed bill taxes on their customers to make their network prices seem cheaper in comparison to competing cellular networks such as AT&T and Verizon, which did bill their customers on taxes. In return for the missing $100 million in taxes, New York state is now Suing Sprint for $300 million in addition to extra damages, which have yet to be publicized.
Sprint has been going through some rough financial times and was rumored to file for bankruptcy. The deal Sprint signed with Apple to carry the iPhone is certainly one of their biggest assets as the iPhone is their best-selling phone and it is helping to keep the company afloat. The $300 million damage due to their mistake, however, is going to put a dent in their profits for a little while.
Citing Reuters, Sprint was able to make their cellular service $4.6 million less expensive per month by not making their customers pay taxes. The good news is, New York state is not going after the customers that never paid the taxes, but instead the company itself. In this event, the customers get off without having to pay any taxes on their previous bills.