Skadden successfully represented FedEx Corporation in an IRS examination of the classification of FedEx Ground's package pickup and delivery contractors. Prior to Skadden's involvement, the IRS had proposed a $320 million adjustment for 2002 consisting of employment taxes and penalties, with the prospect of similar liability amounts in all later years. Skadden persuaded the IRS to re-examine the issue. Ultimately the IRS withdrew its proposed adjustment completely and agreed it would not challenge FedEx's historical treatment of the contractors.
Skadden, Arps, Slate, Meagher & Flom LLP and Affiliates