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IRS orders FedEx to pay $319 mln
http://www.marketwatch.com/ ^ | December 22, 2007 | Greg Morcroft,

Posted on 12/22/2007 2:49:32 PM PST by lowbridge

FedEx Corp. said late Friday that the Internal Revenue Service has ordered the company to pay back taxes and fines totaling $319 million for ground employees the firm misclassified as independent contractors.

The ruling covers 13,000 employees FedEx had in 2002, and the company said that the IRS is investigating the status of contractors hired between 2004 and 2006. That probe could lead to further penalties, the company said.

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events
KEYWORDS: fedex; irs
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To: proudofthesouth

Meanwhile, CompUSA, which has been good for me, is shutting its doors after the holidays.


41 posted on 12/22/2007 4:58:08 PM PST by Tolerance Sucks Rocks (Tagline auction at this location, 01/01/2008)
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To: RAY
Then why in the hell should this make any difference - other than the fact it is a damn arbitrary law?

Not only the SS and income tax withholding, it can also be a way to avoid obtaining Workers' Compensation insurance and quite likely all or part of the liability insurance bill. This type of thing used to happen a lot in the trucking business but most states have tightened their laws.

42 posted on 12/22/2007 4:59:32 PM PST by DeFault User
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To: lowbridge

Last year I was tracking a Fed Ex ground shipment....and sure enough it arrived on time in Montana. Problem was....I’m in New Jersey.


43 posted on 12/22/2007 5:02:22 PM PST by Focault's Pendulum (Doomage on you)
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To: shadeaud
I bet FED-EX will use the U.S.P.O. to deliver the moolah. That way they can be assured it will be delivered by Christmas(2008)

I have an account with FedEx, print my own labels at home, and drop the packages at any FedEx Kinkos or many Mailboxes etc too. In 5 years of shipping several hundred packages a year via FedEx Ground, they have never once misdelivered or not delivered a package. Insurance up to $100 is included with the shipping charge.

FedEx Ground is significantly less expensive than UPS, plus their workers are non-union as opposed to UPS, which of course is union. And we all know which political party those union dues get donated to ...

44 posted on 12/22/2007 5:16:42 PM PST by webschooner
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To: Myrddin

I think most people understand that the mean old IRS will come after ‘you’ on any number of issues.

But you are missing the point.

Why should the ‘free’ American people put up with this KGB IRS crap???

Read and Heed:

http://www.fairtax.org


45 posted on 12/22/2007 5:18:18 PM PST by Hostage
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To: xrp

Bump for bookmark since I work there.


46 posted on 12/22/2007 5:20:58 PM PST by Nowhere Man (Goofus drops carrier, Gallant logs off properly)
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To: packrat35
Been shopping with Amazon for 10 years and never had any issues.

I've been purchasing from Amazon almost as long, and haven't had any problems. I have returned things a couple of times, and the process was simple and seamless both times. Also, their prices are quite often the lowest on the web or locally as well (I shop diligently for price, once I know what item I want), and if Amazon is shipping it, as opposed to a third party, I usually get free shipping.

47 posted on 12/22/2007 5:21:01 PM PST by webschooner
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To: proudofthesouth

You’ll be glad to hear that Comp USA has finally closed ALL of their stores. :) Good riddance.

Who bankrolls these horrible companies for years on end? Yeesh!


48 posted on 12/22/2007 5:22:55 PM PST by Diana in Wisconsin (Save The Earth. It's The Only Planet With Chocolate.)
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To: woofer
Weren’t these the delivery guys from the RPS ground service that Fedex bought from Roadway Freight to jumpstart their Fedex Ground service? The RPS delivery guys were independent contractors.

Yeah, RPS was that way prior to them being bought out and they became Fed Ex Ground. I'm following this with great interest since I work there. I hope the ruling is challeged, some say if it is, it will be laughed out of court.
49 posted on 12/22/2007 5:26:49 PM PST by Nowhere Man (Goofus drops carrier, Gallant logs off properly)
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To: purpleraine
How is FedEx the contractors sole customer? Who are all those people they pick up packages from and deliver them to?

Did FedEx dictate whether the "contractors" could charge those other people additional delivery charges in the conduct of their "business". An independent contractor would be setting their own rates to charge FedEx, and also whatever they could charge their "other" customers for pickup, storage, transportation, and delivery.

That's what "businesses" do.

If the FedEx contract restricted the "contractor's" ability to charge "other customers" whatever their particular markets would bear, then they were not very "independent".

50 posted on 12/22/2007 5:43:13 PM PST by meadsjn (Hey Spock, round off, partner!)
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To: meadsjn
I'm almost 100% certain that FedEx has standard rates.

I draw an analogy to real estate. I think some companies dictate commission to charge the client on a listing. The buyers agent usually gets 1/2 of the listing agent's commission. But even that's negotiable.

In our company, we set a minimum that the associates must charge. However, that can be waived on a case by case basis. We give the agents a lot of discretion, as we would want ourselves.

51 posted on 12/22/2007 5:51:21 PM PST by purpleraine
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To: webschooner

You might want to check and see who FedEx is donating to. American business is pumping as much money to the Democrats as it is to the Republicans. However, its not sending much money to conservatives.
Furthermore, I use UPS for the very reason they are Teamsters.


52 posted on 12/22/2007 5:54:26 PM PST by em2vn
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To: em2vn

Fred Smith endorsed John McCain very early.

My guess it had to do with two things. Both ex military and Fred figures that he will get the most out of John.


53 posted on 12/22/2007 6:02:23 PM PST by Coldwater Creek
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To: em2vn
American business is pumping as much money to the Democrats as it is to the Republicans.

Of course they are -- It's not for political reasons. It's a necessary business decision and business expense. They are simply protecting their shareholders' property -- the business. Basically all big corporations donate to both parties for that reason. Microsoft was donating very little to either party a few years back, so they were rewarded with the Justice Dept going after them hard during the Klintoon administration. The Federal gubmint is not that different from the neighborhood Mafia in many ways, only on a national level.

I chose to do business with FedEx over UPS because: 1) the cost is less and the service has been flawless in my experience, and 2) I personally prefer to do business with non-union companies where possible, because irrespective of what a corporation donates to the political parties, employee unions all donate exclusively to the Democrat party.

54 posted on 12/22/2007 6:24:05 PM PST by webschooner
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To: webschooner

I live in the Memphis area. You will not find a better employer anywhere in the U.S.


55 posted on 12/22/2007 6:28:30 PM PST by Coldwater Creek
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To: webschooner

I have an account with FedEx, ..................... In 5 years of shipping several hundred packages a year via FedEx Ground, they have never once misdelivered or not delivered a package.
*****************************************
They are also notoriously inept in their billing ,,, I had half the mexican population in my town ship boxes back home overnight using my account number ,,, copied off of a box I dropped off .... any name ,, any phone number ,,, as long as it has an account number with the correct number of digits they will take it at the counter and ship it ... do you have any idea how much it costs to ship just 1 50# box to Chihuahua much less a few hundred boxes... and they weren’t real co-operative at dismissing the charges when I explained I didn’t ship the boxes...


56 posted on 12/22/2007 6:37:37 PM PST by Neidermeyer
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To: Western Phil

The IRS tracks 1099s....they just enforce a couple years later. I received this huge 25 page wage garnishment letter for a golfer we paid for 1 day in 2005 a couple weeks ago.


57 posted on 12/22/2007 7:10:14 PM PST by BurbankKarl
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To: coloradan

And another thing......just who do you think is going to pay those fines and penalties? WE ARE.

There ain’t no money tree planted out back of corporate headquarters from which dollars will be plucked and sent to our benevolent betters in government house.

ABOLISH THE IRS......THE CODE........and their power....

ENACT THE FAIR TAX!!!!


58 posted on 12/22/2007 7:23:51 PM PST by DivaDelMar
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To: Man50D

PING!


59 posted on 12/22/2007 7:27:30 PM PST by DivaDelMar
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To: webschooner

From your description I don’t see how businesses and unions are doing anything different; they’re covering their business interests.
I don’t agree with the unions approach but they are no more culpable than are business interests.


60 posted on 12/22/2007 7:36:28 PM PST by em2vn
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