FedEx: No classification penalties for '04 to '06
(Nov. 11, 2009), by Staffing Industry Analysis
FedEx Corp. said Tuesday it won't face tax penalties for its treatment of FedEx ground drivers as independent contractors for the years 2004 to 2006.
The announcement of a decision by an Internal Revenue Service audit team for the 2004 to 2006 years follows a similar IRS decision that the company won't face taxes and penalties over the classifications for the year 2002. The IRS, at one point, considered charging FedEx $14 million in taxes and penalties for 2002.
FedEx said similar issues may be audited for 2007 and 2008, but the company said it believes the audit team should reach the same conclusion for those years.