FedEx was ordered to pay $319 million in back taxes by the IRS over a disagreement on how the company classified workers for its ground-delivery business, it said in a filing to the Securities and Exchange Commission Friday.
The IRS ruled that in 2002 workers that FedEx considered independent contractors were actually employees of the company, requiring them to pay back taxes for the year.
FedEx said in its filing that it will appeal the decision. It also said the IRS is continuing to look into its employee reporting practices for the years 2004 through 2006.
FedEx faces numerous lawsuits across the country because it classifies its drivers as contractors rather than full employees.