Sprint Faces SEC Probe Over Taxes
New York State Lawsuit Prompts Broader Inquiry
Last April Sprint was hit with a $300 million lawsuit by the State of New York for allegedly failing to collect and turn over to the state more than $100 million in taxes for its wireless phone services over seven years. Leaked documents had shown that Sprint has been "unbundling" the company's monthly plans so that users pay taxes on calls made to people within New York state -- but not to those made to other states. The U.S. Securities and Exchange Commission has now opened a formal investigation
into Sprint's tax collection practices. "The Attorney General's office claims New York consumers, who already pay some of the highest wireless taxes in the country, should pay even more," Sprint said in a statement. "We intend to stand up for New York consumers' rights and fight this lawsuit."