FedEx Admits State Tax Authorities, IRS Are Investigating Contractor Model

Discussion in 'The Latest FedEx Headlines' started by cheryl, Jan 13, 2008.

  1. cheryl

    cheryl I started this. Staff Member

    FedEx Admits State Tax Authorities, IRS Are Investigating Contractor Model - Reuters

    The Teamsters on Friday blasted Fedex Corp. (NYSE: FDX) for announcing plans to continue misclassifying its drivers as independent contractors although the California Supreme Court has declared workers there as employees. The company's independent contractor model is also being challenged by the IRS.

    During a late afternoon conference call Thursday with reporters, FedEx admitted that its subsidiary FedEx Ground's independent contractor model is being probed by state tax authorities in addition to the IRS. FedEx managers would not go into any detail about the number of states looking into FedEx Ground's business operations nor the potential sum of any state back tax liabilities.
     
  2. MrFedEx

    MrFedEx Engorged Member

    Re: Discuss: FedEx Admits State Tax Authorities, IRS Are Investigating Contractor Mod

    Once again, FedEx apparently thinks it's above the law and can still keep the contractor scam going somehow. Given their past record of media posturing, however, these latest denials may just be a tactic to avoid a wholesale devaluation of stock prices.
    :angry:
    I have always been amazed at their "holier than thou" attitude when it comes to legal matters. I guess all 50 states will have to rule against them before they finally concede that they're going to have to make Ground drivers "employees". PSP=People Screwing People.