FedEx hit with $319 million tax hit

IRS finds that delivery company misreported its employees as independent contractors in 2002 and must pay back taxes.

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NEW YORK (CNNMoney.com) -- FedEx was ordered to pay $319 million in back taxes by the IRS over a disagreement on how the company classified workers for its ground-delivery business, it said in a filing to the Securities and Exchange Commission Friday.

The IRS ruled that in 2002 workers that FedEx considered independent contractors were actually employees of the company, requiring them to pay back taxes for the year.

FedEx said in its filing that it will appeal the decision. It also said the IRS is continuing to look into its employee reporting practices for the years 2004 through 2006.

FedEx faces numerous lawsuits across the country because it classifies its drivers as contractors rather than full employees.

Shares of FedEx (FDX, Fortune 500) closed Friday at $94.29 on the New York Stock Exchange. To top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.