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  • 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.

    Sources: Reuters
    This article was originally published in forum thread: New York Suing Sprint for More Than $300 Million started by Anthony Bouchard View original post
    Comments 26 Comments
    1. MPS3's Avatar
      MPS3 -
      nice so now all the employes will lose there jobs due to government wanting there cut
      no one looks at the big picture its all about the money now days
      this is why this economy went to SHITS !
    1. vthree's Avatar
      vthree -
      if their stock drops should one buy in? hmmm. I think it did drop a while back...
    1. budsalinger's Avatar
      budsalinger -
      Quote Originally Posted by MPS3 View Post
      nice so now all the employes will lose there jobs due to government wanting there cut
      no one looks at the big picture its all about the money now days
      this is why this economy went to SHITS !
      the govt wants the money which they are due and if employees lose jobs as a result then that certainly does suck. however it's not new york state's fault it is sprint's fault for being crooks.
    1. quidam_brujah's Avatar
      quidam_brujah -
      Quote Originally Posted by budsalinger View Post
      the govt wants the money which they are due and if employees lose jobs as a result then that certainly does suck. however it's not new york state's fault it is sprint's fault for being crooks.
      +1
      To MPS3:
      That's the cost of doing business. If you don't like taxes, move to a small deserted, unclaimed island.
      The only reason your cell phone works is because our government -- representing you -- has arranged how the public airspace is being used. Without government reserving bandwidth in the public airspace, your wifi, cellphone, TV, radio, bluetooth, etc., wouldn't work: the airspace would be so congested with competing technology that very little would work and you'd end up with brain cancer due to the amount of power and frequencies used to make it work ('loudest voice wins').
      As concerned as you are, MPS3, about paying too much taxes, I'm concerned about having government that works. The FCC is an example of one which generally does work as intended: you may not always like the results, but in a democracy, compromise is the alternative to chaos and violence.
    1. Rich.'s Avatar
      Rich. -
      Welcome to America where missing $100 million somehow makes you entitled to $300 million.
    1. Whetto939's Avatar
      Whetto939 -
      lol no, employees will lose their jobs because Sprint and Hesse are a joke of a company. not because of the government.
    1. alanjf's Avatar
      alanjf -
      Quote Originally Posted by budsalinger View Post
      the govt wants the money which they are due and if employees lose jobs as a result then that certainly does suck. however it's not new york state's fault it is sprint's fault for being crooks.
      And where exactly does it state that the government is actually entitled to ANY tax revenue at all? News flash: There was no such thing as the IRS when this country first came to be, and not for another 150+ years. If you actually bother to study up on this, you'd find that the IRS and way the tax system has been crafted is actually very illegal and unconstitutional. In fact, what we have today is specifically what the founding father DIDN'T want to happen, which is why there were no taxes, as we known them today, for such a long time. So don't sit the and perpetuate that everyone owes anything to the government, and it's the government that's way too big, spends way too much, and is getting way too deep into people's lives.
    1. hadzo's Avatar
      hadzo -
      Quote Originally Posted by alanjf View Post
      And where exactly does it state that the government is actually entitled to ANY tax revenue at all? News flash: There was no such thing as the IRS when this country first came to be, and not for another 150+ years. If you actually bother to study up on this, you'd find that the IRS and way the tax system has been crafted is actually very illegal and unconstitutional. In fact, what we have today is specifically what the founding father DIDN'T want to happen, which is why there were no taxes, as we known them today, for such a long time. So don't sit the and perpetuate that everyone owes anything to the government, and it's the government that's way too big, spends way too much, and is getting way too deep into people's lives.
      x2

      but...still... Sprint f*ed up here big time! All other companies are doing their share... and now, sadly, there will be some layoffs.
    1. Spyruf's Avatar
      Spyruf -
      Quote Originally Posted by Rich. View Post
      Welcome to America where missing $100 million somehow makes you entitled to $300 million.
      Sprint not paying their taxes when they were supposed to probably cause more problems, cuz whoever was expecting the money didn't get and and also they have to sue them which takes time and time is money.
    1. alanjf's Avatar
      alanjf -
      Quote Originally Posted by Spyruf View Post
      Sprint not paying their taxes when they were supposed to probably cause more problems, cuz whoever was expecting the money didn't get and and also they have to sue them which takes time and time is money.
      Indeed, they need to pay for all those 'Vegas parties some how.
    1. FlyingJoey's Avatar
      FlyingJoey -
      Hey... NYS needs the money so that they can turn around and waste it on sh1t such as red tape and not getting anything done.

      Am I the only one who thinks that the roads in NYC are in worst shape than the roads in the middle of the Congo. All this waste... Where are the millions of dollars collected by NYC and NYS going? Up someone's butt?
    1. alanjf's Avatar
      alanjf -
      Quote Originally Posted by FlyingJoey View Post
      Hey... NYS needs the money so that they can turn around and waste it on sh1t such as red tape and not getting anything done.

      Am I the only one who thinks that the roads in NYC are in worst shape than the roads in the middle of the Congo. All this waste... Where are the millions of dollars collected by NYC and NYS going? Up someone's butt?
      Not too far off. It's been wasted and what isn't being wasted is going into the pockets of people who are supposed to be our public servants. Enough is enough, no?
    1. cmwade77's Avatar
      cmwade77 -
      Honestly, I smell something more to this story.....like Sprint did charge taxes, just not what the state thinks they should have.

      Also, I am a firm believer in the price posted should be the price paid for phone service, all taxes, etc. should be included, end of story.
    1. vinaygoel2000's Avatar
      vinaygoel2000 -
      Quote Originally Posted by cmwade77 View Post
      Honestly, I smell something more to this story.....like Sprint did charge taxes, just not what the state thinks they should have.

      Also, I am a firm believer in the price posted should be the price paid for phone service, all taxes, etc. should be included, end of story.
      Not only phone service but all services. Just like Gas, you pay what's clearly marked in big numbers.
    1. ericmac017's Avatar
      ericmac017 -
      NYC waits 7 years to finally sue? Lol there has to be more to this...
    1. Cellular's Avatar
      Cellular -
      Wtf are all these comments talking about government taxes...it clearly states that sprint evaded state taxes not government taxes...

      -1 for people claiming its government taxes sprint is evading

      Quote Originally Posted by cmwade77 View Post
      Honestly, I smell something more to this story.....like Sprint did charge taxes, just not what the state thinks they should have.

      Also, I am a firm believer in the price posted should be the price paid for phone service, all taxes, etc. should be included, end of story.
      +10^5
    1. The 8th Immortal's Avatar
      The 8th Immortal -
      Agreed. The way i see it, Sprint is looking out for themselves as well as consumers. We shouldn't have to pay taxes on everything oxygen touches.
      I read somewhere, paying taxes in The U.S. is, constitutionally, optional. But the government insist on throwing you in the dungeon if you exercise your right and decline to pay. Ticks me off.
    1. alanjf's Avatar
      alanjf -
      Quote Originally Posted by The 8th Immortal View Post
      Agreed. The way i see it, Sprint is looking out for themselves as well as consumers. We shouldn't have to pay taxes on everything oxygen touches.
      I read somewhere, paying taxes in The U.S. is, constitutionally, optional. But the government insist on throwing you in the dungeon if you exercise your right and decline to pay. Ticks me off.
      Exactly, much of the way taxes are collected is actually very unconstitutional (and therefore illegal.) The government (weather it's federal or state) doesn't actually have any write to force someone to pay taxes, nor do they have any right to incarcerate one for exercising their right not to do so (a right which goes all the way back to the founding of this country, in attempt to prevent exactly what we have today, which is no different than what the British were doing then.)
    1. RoloDiva13's Avatar
      RoloDiva13 -
      Quote Originally Posted by The 8th Immortal View Post
      Agreed. The way i see it, Sprint is looking out for themselves as well as consumers. We shouldn't have to pay taxes on everything oxygen touches.
      I read somewhere, paying taxes in The U.S. is, constitutionally, optional. But the government insist on throwing you in the dungeon if you exercise your right and decline to pay. Ticks me off.
      Go ahead. Pay your taxes when/if you want to. Even if this was a legitimate option in the U.S., imagine what would NOT get paid for if we didn't pay even state taxes. Next time you're on the highway and some idiot rams into your car, don't look for a state trooper to come to your rescue; if you have children (and even if you don't like I don't) get ready for streets filled with dumb-@** hooligans because there won't be any state-funded schools (where most of your state tax money goes); last, don't worry about the child molesters, rapists and murders since state taxes also pay for corrections facilities.

      Hey, I hate paying taxes like everyone else, but realize it's a necessary evil if i want public services instead of living in anarchy-land.
    1. alanjf's Avatar
      alanjf -
      Quote Originally Posted by RoloDiva13 View Post
      Go ahead. Pay your taxes when/if you want to. Even if this was a legitimate option in the U.S., imagine what would NOT get paid for if we didn't pay even state taxes. Next time you're on the highway and some idiot rams into your car, don't look for a state trooper to come to your rescue; if you have children (and even if you don't like I don't) get ready for streets filled with dumb-@** hooligans because there won't be any state-funded schools (where most of your state tax money goes); last, don't worry about the child molesters, rapists and murders since state taxes also pay for corrections facilities.
      First of all, I'm not advocating to not pay ANY taxes. But what you need to realize is that so much of what paid in taxes does NOT go to where it's supposed to. It's been recently revealed that as much as 80% of tax money either gets out-right blown on completely frivolous things (such as the recent GSA/Las Vegas scandal where they use nearly a million dollars of our money for parties and hookers) or taken by politicians themselves.

      In other words, if tax money was actually being spent on the things we are told it will be, and not being wasted and squandered, then we wouldn't NEED to be paying so much taxes in the first place.

      Hey, I hate paying taxes like everyone else, but realize it's a necessary evil if i want public services instead of living in anarchy-land.
      This country some how survived for over 150 years before the IRS was invented.