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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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.