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END
TAX FRAUD

A growing number of construction subcontractors are cheating on taxes. Many utilize labor brokers and operate in an underground economy. They pay their employees off the books or wrongly classify them as independent contractors.  $8.4 billion is lost each year to construction industry tax fraud. It’s intentional and it needs to stop. 

8.4B

$8.4 billion dollars are lost each year to construction industry tax fraud.

78%

of voters favor increasing fines & penalties for employee misclassification.  

552M

$552 million dollars are lost in state tax revenues yearly. 

Many

solutions & ways to curb the problem. 

The Tax Fraud Business Model

Some developers and contractors commit tax fraud and get away with it by insulating themselves with layers of subcontractors. Learn more about the Tax Fraud Business Model here.  

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Solutions for Lawmakers

Fortunately, many states and municipalities across the U.S. have had some success in curbing construction industry tax fraud. Learn more about solutions here. 

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HOW YOU CAN HELP

You don't have to be a lawmaker to take action. Click here to learn more about steps you can take to curb construction industry tax fraud. 

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