A growing number of construction contractors are tax cheats. They pay their employees off the books or, less often, wrongly classify them as independent contractors. It’s intentional. Many use labor brokers and operate in the dark shadows of the underground economy.
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NY DAs Target Wage Theft
NEW National Study Shows $8.4 billion in Losses Due to Fraud
NJ Says Contractors Liable for Subs Wage Theft
IL Contractors Told to Pay $1.1 Million
Nashville Built on Worker Exploitation
MN Drywall Contractor Arrested for Fraud
DC AG Collects $2.75 Million
MN Labor Trafficker Locked Up for 4 Months
We all lose when contractors commit tax fraud—taxpayers, workers, law-abiding
contractors and insurers.
Construction industry tax fraud frequently goes hand in hand
with other illegal behavior, like wage theft and insurance fraud.