FedEx Says IRS Withdrew Penalty on Worker Classification
FedEx Corp. said the IRS has withdrawn tentative taxes and penalties of more than $319 million stemming from whether the company incorrectly classified employees as independent contractors, the Associated Press reported.
In a U.S. Securities and Exchange Commission filing, FedEx said the IRS withdrew an assessment of levies against its FedEx Ground unit for the 2002 calendar year that totaled $319 million plus interest, AP reported.
The IRS is still examining the company鈥檚 classification of workers for federal employment-tax purposes, AP said.
FedEx considers the workers owner-operators.
鈥淲e are engaged in discussions with the IRS audit team regarding this matter,鈥 FedEx said in its filing. 鈥淲e continue to believe that FedEx Ground鈥檚 owner-operators are independent contractors and that no loss is probable in this matter.鈥
FedEx is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.