FedEx Drivers Leverage IRS Inquiry

FedEx Corp. contract drivers suing the company for pay and benefits have asked federal judges to consider an Internal Revenue Service preliminary decision that they may be regarded as full-time employees for 2002 tax purposes. (For more on the IRS decision, read here.)

FedEx said in an SEC filing last month that it might have to pay $319 million in taxes and penalties plus interest for 2002 for misclassifying the contractors.

The IRS is reviewing calendar years 2004 through 2006 for similar issues, FedEx said.

The drivers want to use the IRS decision as leverage in a national class action lawsuit seeking hundreds of millions of dollars, claiming the company exerts control over them as if they were full-time workers without paying full-time benefits.