Daily News

View All News

IRS bills FedEx $14 million for contractors

September 11, 2009
Staffing Industry Analysts North American Daily News

FedEx Corp. may face $14 million in taxes and penalties plus interest over use of independent contractors at its FedEx Home Delivery service for 2002, FedEx reported in a filing today with the U.S. Securities and Exchange Commission. Most of the proposed assessment relates to employment and withholding taxes for 2002.

FedEx said it will challenge the findings of the IRS audit, but a final resolution likely won't happen for some time.

"We believe that we have strong defenses to the proposed assessment and will vigorously defend our position, as we continue to believe that all of FedEx Ground's independent contractors, including those providing the FedEx Home Delivery service, are independent contractors," FedEx said in the filing.

The company said similar issues are under audit by the IRS for 2004 through 2008.