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Sprint (S -4.4%) responds back to allegations it owes New York more than $300M in unpaid taxes...

  • Thursday, April 19, 2012, 11:39 AM ET
    Sprint (S -4.4%) responds back to allegations it owes New York more than $300M in unpaid taxes and penalties. "We have collected and paid every penny of sales tax owed to New York."
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This news story has 29 comments:

  • So New York just randomly picked S for a $300M lie?
    19 Apr 2012, 11:40 AM Reply Like
  • It's not random, Ocean. Union tactics are at play here. It's the corruption and infiltration by unions into New York's political system. The unions are in a full scale attack mode against Sprint and in particular now that AT&T contract negotiations are in progress and the union is working without a contract.

    Re: http://eyeonsprint.org
    Also: http://bit.ly/IBdwQq
    19 Apr 2012, 12:34 PM Reply Like
  • Good point, Denny. And thanks for the reads! Unions are destroying America!
    19 Apr 2012, 12:42 PM Reply Like
  • These two entities deserve each other...
    19 Apr 2012, 11:40 AM Reply Like
  • Explains today's rollover... in addition to unexciting results from VZ.
    19 Apr 2012, 11:52 AM Reply Like
  • Well, I'm glad we got that settled.
    19 Apr 2012, 01:25 PM Reply Like
  • While it might be fun to blame workers daring to organize for all the problems of our economic system, the NYAG says that in this case the other carriers do not argue with his interpretation of the law, which is that they owe tax on all calls, not just those that start and end within the state.

    Sprint, on the other hand, says they do disagree with that interpretation.

    It would seem then that if Sprint is correct T and VZ are in for some hefty refunds.
    19 Apr 2012, 02:43 PM Reply Like
  • I'm not blaming workers... I'm blaming power hungry unions that claim they are "for the workers" when in reality, they simply use the workers as pawns in a quest for political domination.
    19 Apr 2012, 02:50 PM Reply Like
  • What do the union bosses have to do with Sprint's differing interpretation of the tax law? The NYAG says that the other carriers paid their taxes based on an interpretation of those laws Sprint now rejects.

    "Corrupt union bosses" is a handy excuse for lots of stuff, but I've never seen it used as an excuse for tax fraud before. Maybe I should underpay my next year's taxes and see if it works for me.
    19 Apr 2012, 03:16 PM Reply Like
  • It's a "he said, she said" argument at the moment lacking in facts and details. I'll attempt to not sail either side down the river... yet.

    More generally speaking, though, is my general frustration with unions and their shady tactics. Union members are simply the pocketbooks for unions themselves. I don't subscribe to the naive theory that all workers should receive equal pay, benefits, etc. I've worked before... so I know not all people contribute equally, therefore, should not be compensated equally.

    Unions are a touchy topic... I'm sure we could have a near endless debate on their place, or lack thereof, in America. I'm not trying to open a can of worms... But good stuff, nonetheless! :)
    19 Apr 2012, 03:32 PM Reply Like
  • Here at Seeking Alpha I've seen unions blamed for near everything over the last year. And all union "bosses," as well as government employees, uniformly called "corrupt" or easily corrupted. With corporate chieftains held blameless in nearly every case.

    Experience teaches me that can't be right. There are honest union "bosses." And there are honest government employees. And god knows there are corrupted corporate chieftains.

    So I avoid going with the easy, ideological excuse. Skepticism is OK in my book, but cynicism usually winds up biting the cynic in the behind.
    19 Apr 2012, 04:06 PM Reply Like
  • It's hard to take a stand, Dan....
    19 Apr 2012, 09:19 PM Reply Like
  • Agreed. Maybe the tide is turning regarding the chieftains of corps... referencing the Citigroup shareholder vote of CEO pay.

    I'm not trying to say all union members, bosses, or govt employees are corrupt. Heck, I have family that works for the govt and have been in unions. I know they are honest, hard working people - and I'm sure that extends to others outside my family.

    My point... I don't want unions speaking or acting on my behalf and forcing me to pay dues to support THEIR agenda. I feel my work and consequent results will speak for themselves - be it good or bad.

    Companies want talent and skill, so for those who have it, the voices of many aren't required. To those who lack it, the power of numbers is all they have.

    In sum, "the collective good" detracts, if not eliminates, an individuals' ability to prosper. Thus my argument that they are destroying the country.
    19 Apr 2012, 04:31 PM Reply Like
  • I won't address the argument because it has nothing to do with the topic. The accusation was made that the Sprint tax problems were the fault of "union bosses." I asked for clarification or evidence. What I've gotten, so far, is ideology.
    19 Apr 2012, 05:41 PM Reply Like
  • Well, back up and look at the bigger picture here. Taxes are breaking American enterprise. This is $100M in taxes just for one state!!! Wow. If AT&T and VZ have been paying it, then Sprint is up the creek without a paddle. The suit was actually initiated by Empire State Ventures. I am not sure of any union connection there. However, my point was that this was not a "random" enforcement act. Both AT&T and VZ would have an interest as well as the CWA. As well as the taxpaying customers of AT&T and VZ.

    I would like to see it ruled as "interstate commerce" and declared that NY did not have the right to levy the tax. Unfortunately, it is not likely to go that way for the same reason that if I buy a shirt in NY and ship it to KY, I pay sales tax on it to NY due to the fact that the transaction was executed from in NY. However with an interstate communication device, I may be in MT and make a call to CA on a service plan that I purchased in NY. That is interstate commerce and states have no legal jurisdiction over it. Then what right does NY have to tax that transaction?

    So this was not random. I am just saying there was calculated motive by someone. Several parties have motive for this action against Sprint. And it may be justified in the end. But you have to believe the CWA is cheering it on and writing letters, calling politicians and applying their considerable influence in any way they can. Regardless of right or wrong, legal or illegal, the unions will side against Sprint and apply political influence against Sprint.

    Taxes, government, regulation and unions are a cancer on the economy. They suck the life blood out of it, destroying healthy cells and replacing them with a growing malignancy which is sloth, gluttony, envy, waste, and corruption. We have to purge our country of this cancer. Sometimes to kill cancer, you have to cut out some healthy cells too. If we want to survive, we have to take a meat ax to government regulations and spending at all levels.

    Oceanstats is the real culprit here. He got all this stired up with a simple one line question.
    19 Apr 2012, 05:33 PM Reply Like
  • Oh, please. American corporations face lower taxes than in most of the industrial world, and many of the largest pay no taxes.

    You want wars? You want police? Pay taxes.
    19 Apr 2012, 05:42 PM Reply Like
  • Hey, just because Greece, Italy, Japan and others pay high corporate taxes does not make it the right policy. Of course Obama's boy Imelt got GE out of paying any taxes. Just take a look at the 10-K report for Exxon Mobile. $52B in profits and $30B in taxes. True more earnings and taxes from foreign earnings and foreign countries, but it's a lot of tax to pay. Corporations do not pay taxes. Taxes pass on through to the consumers in the form of higher prices needed to generate the revenue to produce the ROI required to satisfy the risk to reward ratio for whatever business they are in. Why is that so hard for people to understand?

    Now you made a great point about if Sprint is right about their position, then VZ and AT&T are due back one hell of a rebate check. Of course these taxes were paid by their customers and would rightfully have to be rebated back to them. While S on the other hand, has no chance of going back to collect those sales taxes they failed to collect at the point of sale. Serious, serious blunder. Sprint has really screwed the pooch here.

    I checked and double checked on my own little business because my margins are less than state sales taxes rates. Even as I am just a dumb ass old country boy, I realized that if I owed sales taxes on my revenues, that I had better collect them otherwise I would be in serious trouble.

    A better question than the rebate issue is.... "How many more states does Sprint have this same problem with?" This could bankrupt the company in one fatal swoop. You can bet your ass the CWA is lobbying every state in the Union to jump on Sprint.

    Man, this is serious. It could be "lights out" for Sprint. Because if this thing has validity, it also has legs.
    19 Apr 2012, 06:04 PM Reply Like
  • Let me just address the Sprint comments. I agree. Even if they win the case at trial, it will cost money for lawyers. Lots of money.And if there is any kind of settlement, again, all the other states start looking at the same issue.
    19 Apr 2012, 06:51 PM Reply Like
  • Want wars? Not so much. I am, however, willing to accept them as inevitable events. And we do pay taxes... a lot. Wasn't there a reminder just a couple days ago?...
    20 Apr 2012, 02:14 AM Reply Like
  • Deficit. Terrible deficit. Huge deficit. Gotta pay the deficit. Deficit caused by putting two wars on the credit card. Gotta pay that back.

    It's what my dad used to say 40 years ago. Don't like cops? Next time you need help, call a hippie.
    20 Apr 2012, 08:54 AM Reply Like
  • Yea and when the hippie needs a new "weed guy" he can call an unemployed cop.
    20 Apr 2012, 09:02 AM Reply Like
  • Funny how we've changed sides on this. Now it's liberals defending cops and conservatives attacking them as union thugs.

    Good luck with that, by the way.
    20 Apr 2012, 09:24 AM Reply Like
  • So all the rest of the Federal spending was done with - cash?
    23 Apr 2012, 09:35 PM Reply Like
  • Someone needs to be reminded of where the deficit stood at the end of the Clinton Administration....
    24 Apr 2012, 09:15 AM Reply Like
  • Dana says "Now it's liberals defending cops and conservatives attacking them as union thugs."

    Any reference? Liberals are defending the labor gangs generous benefits and votes, while conservatives merely wish to bring them in line with the private sector, to keep cities and states from chapter 7 or 13...

    Your arguments are not factual, but simply emotion based, something liberals excel in...
    24 Apr 2012, 10:23 AM Reply Like
  • The NYAG is a cop. You attacked him, claimed he was corrupt, claimed he was working at the behest of dark forces. I defended him.

    I know you enjoy projecting your emotionalism on those who disagree with you, but I'm calling you on it. And I will continue to do so. Not for your sake, but for the sake of those of clearer heads who don't want to lose money in emotional appeals to ideology, like your last.
    24 Apr 2012, 11:15 AM Reply Like
  • AG's are cops with wired-in political connections have ample motive and opportunity for corruption. AG's are notoriously political and corrupt.

    It will be interesting to see if Sprint sets aside any reserve funds out of their cash flow to cover any potential liablilites as a result of this thing getting eventually settled with an amount due. That would bake in a pretty large loss for Sprint for the next quarter.
    24 Apr 2012, 12:24 PM Reply Like
  • Dana, please enter the correct time zone. You have mistaken me for some else..
    Please get a grip..

    Dana says "Now it's liberals defending cops and conservatives attacking them as union thugs."

    Again, I ax you, any reference? If not, I have made my case (nyag) and I am done with this thread...
    24 Apr 2012, 03:08 PM Reply Like
  • Hope they can work out in some way......
    19 Apr 2012, 10:13 PM Reply Like
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