Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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.

Subscribe to Companies
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

fedex_logo.03.jpg

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

Photo Galleries
Homes in these ZIP codes are selling like crazy Strong job growth, growing interest from Millennials and affordable home prices are attracting home buyers to these cities. More
Working class whites & the government: It's complicated These Clearfield, Pennsylvania, residents are mad at D.C., but want more help. More
Dear Trump and Clinton: Here's what swing voters want These voices are based on interviews with American voters from the key swing states of Florida and Ohio. It's part of a special report titled "Your money, your vote," that will air on CNN on October 15. More
Sponsors