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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US Treasury Cites Construction for Tax & Workers’ Comp Premium Fraud
MN Seeks $2.4 Million for Wage Theft
New Study: Up to 2.1 Million Construction Workers Illegally Misclassified
New Report on Work Comp Fraud
Feds Bust Multi-Million Dollar Fraud
Contractor Pays for Sub’s Prevailing Wage Violations
Feds Tell Banks to Report Contractor Fraud
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.