IRS vs FedEx - IRS vs. FedEx Alex Gase FedEx was under...

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IRS vs. FedEx Alex Gase FedEx was under Federal IRS investigation originally starting for their 2002 tax year due to their Ground Division’s business model. They were cited for misclassifying their individual ground drivers as independent contractors. Lawsuits have been brought up in 36 U.S. states by some current and former FedEx ground drivers seeking restitution. Their claim was that the” level of control the company exercised over their work qualified them as employees — and that they deserve the benefits that go with that status” (Kilcarr, 2007). Due to a California ruling indicting FedEx of misclassifying employees as contractors FedEx was forced to terminate more than 1,000 contracts paying $25-$37 million. That was in California alone and FedEx would be forced to do the same all over the country. It was speculated that when all said and done FedEx would pay around $1.5 billion in taxes and expenses. The problem with the situation was that the independent contractors were paying payroll taxes that in reality should have been paid by
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IRS vs FedEx - IRS vs. FedEx Alex Gase FedEx was under...

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