FedEx to Challenge IRS Characterization of its Drivers as Employees, Not Independent Contractors

Following up on my prior posts:

• FedEx Drivers Are Employees, Not Independent Contractors
• FedEx Defends Treatment of its Drivers as Independent Contractors, Not Employees
• What Can Brown Do To You: UPS Tax Lawyer Drops Dime on FedEx, Prompts Ohio to Reclassify Drivers as Employees, Resulting in $654k Tax Liability

According to the Form 8-K filed with the SEC, the IRS has assessed $14 million of taxes and penalties (plus interest) against FedEx for 2002 on the ground that it erroneously treated its Home Delivery workers as independent contractors rather than as employees. The IRS accepted FedEx's characterization of its Ground Package System workers as independent contractors. FedEx plans to contest the IRS's determination as to its Home Delivery workers.