Sprint Gets SEC Subpoena Tied to Sales Tax

Sprint Nextel received a subpoena from the U.S. Securities and Exchange Commission in connection with its probe over the wireless carrier's collection of state and local taxes.

The SEC's investigation follows a suit filed against Sprint by New York's attorney general in April, seeking $300 million for the carrier's alleged failure to pay sales taxes due on some of its wireless plans over the past seven years. At issue is exactly what proportion of a flat-rate calling plan can be taxed by the state where the customer lives. Sprint's position is that New York can only tax calls that start and end in the state. New York Attorney General Eric Schneiderman, however, said state law requires cellphone companies to collect and pay sales taxes on the full amount of their monthly charges.