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FedEx: IRS team withdraws call for assessment

November 02, 2009
Staffing Industry Analysts North American Daily News

FedEx Corp. said Friday an Internal Revenue Service audit team now says the company won't have to pay a tax assessment in regard to FedEx Ground's independent contractors for the 2002 calendar year.

FedEx reported in September that the IRS was considering charging the company $14 million in taxes and penalties plus interest over the use of independent contractors in its FedEx Home Delivery service for 2002. Most of the proposed assessment had related to employment and withholding taxes.

"We are pleased with the IRS audit team's decision not to assess any tax or penalty with respect to any of FedEx Ground's independent contractors, including our FedEx Home Delivery independent contractors," according to FedEx.

Similar issues remain under audit for 2004 through 2008, but the company said it believes the audit team should reach the same conclusion for those years as well.