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Sprint-Nextel Says SEC Probe Follows NY Tax Suit

Arvind Grover

Sprint-Nextel Corp. says it's cooperating with a Securities and Exchange Commission investigation into its collection and remittance of state and local sales taxes, saying it follows the flawed lawsuit filed by New York Attorney General Eric Schneiderman.

Sprint says it recently received an SEC subpoena regarding tax collections and payments, including those in New York.

The telecommunications company has asked a judge to dismiss the New York suit claiming $100 million in unpaid sales taxes and seeking treble damages.

Schneiderman says Sprint should collect taxes on the full amount of monthly access fees for mobile calling plans, while it has withheld about 25 percent based on the theory it doesn't owe them on the interstate portion.

Overland Park, Kan.-based Sprint says Thursday that the suit is without merit.

Copyright 2012 The Associated Press