IRS Drops $319 Million Tax Claim Against FedEx Ground

October 24, 2008 10:17 p.m. EST

Memphis, TN (AHN) - The Internal Revenue Service has dropped its claim for a $319 million tentative assessment in 2002 from FedEx Corp.'s Ground division.

FedEx Ground insisted that its drivers are classified as independent contractors and not employees.

It said the company was pleased with the decision and that the IRS' audit is still ongoing.

FedEx Corp. is the country's largest courier providing a portfolio of transportation, e-commerce and business services.

Among its service units include FedEx Ground, FedEx Freight, FedEx Office and FedEx Global Supply Chain Services.