FEDEX SETTLES EXCISE TAX DISPUTE WITH IRS.MEMPHIS Memphis, city, ancient Egypt Memphis (mĕm`fĭs), ancient city of Egypt, capital of the Old Kingdom (c.3100–c.2258 B.C.), at the apex of the Nile delta and 12 mi (18 km) from Cairo. , Tenn.--(BUSINESS WIRE)--August 14, 1995--Federal Express Corporation announced today that it had reached an agreement concerning an excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. dispute with the Internal Revenue Service for the seven and one-half year period ending March 31, 1991. Under the terms of the settlement, FedEx will not owe any additional excise tax for this period. The dispute involved a claim by the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. that the Company had underpaid un·der·paid v. Past tense and past participle of underpay. underpaid Adjective not paid as much as the job deserves underpaid adj → federal excise tax by as much as $159,000,000. This settlement agreement completes the IRS' audit of the Company's federal excise tax returns for the period covered by the settlement. The Company also gave up its claim for a $70,000,000 refund of excise tax for the same period. Federal Express is the world's largest express transportation company, providing fast and reliable services for nearly 2.4 million items in 204 countries each working day. The company employs more than 111,000 people and operates more than 500 aircraft, 35,500 vehicles and nearly 180,000 Powership(R) and FedEx Ship(TM) automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. systems in its integrated global network. Federal Express reported revenues of $9.4 billion for its fiscal year ended May 31, 1995. CONTACT: Federal Express Corporation, Memphis Tom Martin, 901/395-3490 |
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