Sprint to pay NY state $330M in suit over unpaid sales taxes

ALBANY, N.Y. – New York state officials say Sprint will pay $330 million to settle a lawsuit that accused the telecommunication company of dodging more than $100 million in state and local taxes.

Attorney General Barbara Underwood and Acting Tax Commissioner Nonie Manion said Friday the agreement resolves a tax enforcement case brought in 2011.

The suit said Sprint violated the New York False Claim Act for nearly a decade by knowingly failing to collect and remit sales taxes owed on flat-rate wireless calling plans sold to New Yorkers.

Sprint spokeswoman Lisa Belot says the Overland Park, Kansas-based company disagrees with the state’s characterizations but is pleased with the settlement and believes it’s in Sprint’s best interests.

State officials say a whistleblower in the case will receive nearly $63 million of the settlement.