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Computer industry

Telecommunications Giants MCI and Sprint Face Lawsuits Over Unauthorized Tax Charges

Strategic Insights

— 2 min read

Two Hillsborough County residents have filed lawsuits against telecommunications giants MCI and Sprint, alleging that they illegally charged state and local taxes on long-distance calls made by residential customers in Florida. The suits claim that the companies excessively collected a state sales tax and municipal utility tax on long-distance calls, defying state law and the federal excise tax. The lawsuits were filed in federal court on behalf of George Lehner and Oleg Menyhert, and seek class-action status to compel the companies to return all money they claim was illegally collected from residential customers in Florida.

Key Takeaways:

  • MCI and Sprint are accused of illegally charging state and local taxes on long-distance calls made by residential customers in Florida.
  • The lawsuits claim that the companies collected excessive state sales tax and municipal utility tax on long-distance calls, violating state law and the federal excise tax.
  • The suits were filed by the Miami firm of Robles and Gonzalez and seek class-action status to recover ill-gotten gains from residential customers in Florida.
  • Delta Air Lines has resumed nonstop flights between Tampa International Airport and New York's La Guardia Airport, offering competition to US Airways' daily nonstops.
  • Nobility Homes Inc., a Ocala-based homebuilder, has authorized a three-for-two stock split of its outstanding common shares, with a record date of January 30.
  • Medical Manager Corp., a Tampa-based physician practice manager, has acquired eight independent dealerships in seven states, including Companion Technologies Corp.
  • The Federal Reserve's Justice Department-ordered sale of branches and deposits facilitated NationsBank Corp.'s acquisition of Barnett Banks Inc.
  • Apple Computer Inc. has returned to profitability, buoyed by cost-cutting and strong demand for its new computers, and expects to earn more than $45 million in its fiscal first quarter.

Statistics:

  • MCI and Sprint collection of excessive state sales tax and municipal utility tax is alleged to have broken state law and the federal excise tax.
  • 67 branches and $3.1 billion in deposits were sold as part of the NationsBank Corp. acquisition of Barnett Banks Inc.
  • Delta Air Lines operates nonstop flights between Tampa International Airport and New York's La Guardia Airport daily.
  • US Airways operates daily nonstops from Tampa to La Guardia Airport.
  • Nobility Homes Inc.'s stock split ratio is three-for-two on common shares.
  • Medical Manager Corp.'s acquisition includes eight independent dealerships in seven states.
  • Apple Computer Inc.'s fiscal first quarter earnings are expected to be more than $45 million.

Sources:

  • The Associated Press
  • Bloomberg News
  • The Tampa Bay Business Journal

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