FedEx May Have Seen the End of IRS Audits

Following a recent decision not to assess any tax or penalty with respect to FedEx Ground's independent contractors for the year 2002, the Internal Revenue Service has also let the company off the hook for 2004 through 2006

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The company sees the second audit drop as a sign that there will be no further penalties regarding its independent contactor tax status, even though calendar years 2007 and 2008 are not yet in the clear.

"While similar issues may be audited for calendar years 2007 and 2008, we believe the Audit Team should reach the same conclusion on these issues for each of those years, as well," the company said in a statement.

The carrier has been in legal and tax battles for years over whether or not its independent contractors are considered company employees.

"FedEx Ground's independent contractor model has been tremendously successful for our customers, the hard-working independent contractors and FedEx Ground for more than 20 years," the company said. "It is clear that the IRS decision today further validates this business model and we look forward to continue growing the model for many decades to come."