NY Appeals Court Won't Let Sprint Escape $300M Tax Suit

Law360, New York (February 27, 2014, 3:18 PM EST) -- The New York Supreme Court Appellate Division on Thursday refused to allow Sprint Nextel Corp. to ditch a $300 million suit filed by New York's attorney general that accuses the company of dodging state taxes, saying the tax law at issue applies to interstate phone services.

In a unanimous opinion, the intermediate appeals court in Manhattan rejected Sprint's arguments that the Federal Mobile Telecommunications Sourcing Act preempted the state's sales tax law, and that the punitive nature of penalties under the state's False Claims Act violates...
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