A year-long federal inquiry into Sprint Corp.’s collection of sales taxes has ended without action, the company said in a regulatory filing Monday.
The Securities and Exchange Commission dropped its investigation on July 2, Sprint said in its quarterly financial report to the SEC. The filing said the SEC told Sprint that it “did not intend to recommend an enforcement action against the company.”
Sprint still faces a $300 million claim from New York under a lawsuit brought by the states’ attorney general in April 2012. It charges that Sprint failed to collect sales taxes properly and shortchanged the state’s coffers.
The state complaint also said Sprint, by not collecting all the taxes from customers that it should, had gained an unfair advantage over rival carriers.
In the New York case, Sprint has argued that it needed to collect taxes only on wireless calls between cities in New York and not on calls to numbers outside the state.
Sprint’s quarterly filing Monday said the New York case continues though the company does not expect the outcome to have “a material adverse effect” on its finances.