Boston woman files $10-million lawsuit against AT&T over taxes on her iPhone Internet service

Leslie Rock, a Beacon Hill resident who pays AT&T roughly $30 a month to connect her iPhone to the Internet, today filed a class-action lawsuit in US District Court in Boston that charges the company is illegally collecting taxes on the service.

In her complaint, Rock seeks to establish a class of Massachusetts residents who, collectively, are owed $10 million because federal and state law prohibits taxes on Internet services. However, the suit also alleges these "thousands of individuals" are being charged both state and local sales tax on the service even though Massachusetts cities and towns have no local sales taxes.

Complete complaint.