OVERLAND PARK (dpa-AFX) - In a response to the Securities and Exchange Commission investigation of Sprint's state and local sales tax collection, Sprint Nextel Corp. (S) said that it is cooperating with the SEC in regards to its inquiries and it believes its practices with respect to state and local taxes on mobile wireless services are in compliance with applicable law.
The investigation follows a filing by the New York Attorney General alleging Sprint did not collect the proper New York state taxes from Sprint's New York customers.
Sprint noted that it recently received a subpoena from the Securities and Exchange Commission in connection with its investigation of our practices in the collection and remittance of state and local taxes, including those in New York.
The company said in the statement that because the New York Attorney General's lawsuit and complaint is without merit, it filed on June 14, 2012, to have the case dismissed and intends to continue defending the matter vigorously.
The company said that 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. The company noted that it intend to stand up for New York consumers' rights and fight this lawsuit.
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