FedEx said it is preparing to meet with an audit team from the Internal Revenue Service to discuss the IRS's tentative conclusion that FedEx should reclassify its delivery drivers as employees rather than independent contractors.

FedEx expects the meeting to take place this spring. The IRS told FedEx last month that it anticipated assessing tax and penalties of $319 million plus interest for misclassifying FedEx Ground delivery drivers, whom the company calls "pickup-and-delivery owner-operators," in 2002 (see FedEx Employees Misclassified, Says IRS).

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