WebCPA reports that the IRS has agreed that Federal Express drivers are independent contractors and not employees:
The IRS has decided not to assess extra employment taxes for 2004 to 2006 on FedEx for the delivery drivers that the company considers to be independent contractors.
The company said recently that the IRS had decided not to impose the extra taxes for 2002. In an SEC filing on Tuesday, the company disclosed that the IRS’s audit team confirmed Monday that it would not assess federal employment taxes for any of the independent contractors at FedEx Ground Package System Inc. for not only 2002, but also for the next three calendar years that had been under audit: 2004 through 2006.
FedEx noted that similar issues may be audited for calendar years 2007 and 2008, but the company believes the IRS audit team would reach the same conclusion for each of those years as well.
The IRS had told the delivery giant in December 2007 that it considered the employees to be misclassified as independent contractors and ordered the company to pay back taxes and penalties.
I have a client who owns and operates a shuttle service who is currently in a dispute with the IRS over whether his drivers are independent contractors or employees. I’ll be emailing this article to IRS counsel.
Thanks WebCPA.
Related Posts:
- Tax Court Update – November 2008 – Independent Contractor v. Employee
- You May be an Employee and Don’t Know it: Independent Contractor Rules
2 responses so far ↓
1 Employees, Independent Contractors and the Home Worker Category // Feb 8, 2010 at 10:44 am
[...] Fed-Ex Drivers are Independent Contractors [...]
2 Mike // Aug 22, 2010 at 11:22 pm
I was working as a courier as a independent contractor with the same company for 9 years they imposed on all drivers to wear their shirts and use their nextel radios at the absorbent rate of 19 dollars a week and the shirts you were forced to buy from them which had their logo. there was a flyer taped up in the driver lounge that stated if you didnt wear their shirts that you would be refused to pick up or deliver any packages for the company and the same rule applied with the radios. I told them that this was agianst the irs employee vs I. C. code and infringed on the right of the Independent contractor. I was fired on 08-15-10 for refusing to wear there shirts. Is there anybody out there that can tell me whether I have legal right to sue or not. In my I. C. contract with them it does not state that I must wear their shirts or use their radios. Do I have any legal rights? please email at fez12133@yahoo.com Thanks Mike
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