Fortunately, many states and municipalities across the U.S. have had some success in curbing construction industry tax fraud. Learn more about solutions here.
You already have all the tools you need to fight construction industry tax fraud. Across the U.S., individuals, states, municipalities and even local school boards are taking action against construction industry tax fraud. And, they've had some success.
You have the power to make a difference. Check out the solutions below.
Solutions for Lawmakers:
Responsible Bidder Ordinances
An RBO is a policy that sets minimal requirements for all contractors bidding on publicly funded projects in a given political jurisdiction. The policies are a kind of “insurance policy” for taxpayers. The local ordinances establish clear, objective standards that contractors must meet in order to win bids and construct projects funded using taxpayer dollars.
Strengthen & Enforce Laws
We need to expand and strengthen solutions that work. Some contractors at the upper levels repeatedly use law-breaking subcontractors and labor brokers to get around the law. They will keep cheating and committing tax fraud as long as they can dodge accountability. If those contractors were held responsible they would think twice before using crooked subcontractors and labor brokers.
We encourage all government agencies to work together. Agencies can team up to fight construction industry tax fraud in states, provinces, counties and cities. If the Department of Labor, Department of Workforce Development, Department of Revenue and the Worker's Compensation Board shared information about misclassification, uncovering tax fraud and enforcing the law would be easier. Currently, most state agencies do not share information about worker misclassification.
Construction industry tax fraud has a major impact on tax revenues, local workers and law-abiding businesses. You've taken the first step to curbing the problem by visiting this website. Check out our additional resources to learn more, or contact us to talk with someone on our team about how you can help.
Create a Task Force
A government task force is created with the purpose of curbing misclassification and tax fraud. Task forces have been created with a variety of purposes. These include: to have yearly reporting on misclassification, to send misclassification reports to an investigator, to access the extent of the problem and make legislative recommendations to the general assembly.
Solutions for Individuals:
Watch for tax fraud and misclassified workers on jobs.
When you see someone being taken advantage of or committing tax fraud, report it to EndTaxFraud.com.
Let others know about tax fraud and what they can do.
Attend tax fraud related meetings to show the impact on real workers.
Patronize and support companies that hire local workers.
Take it to the Top
Call your legislators to inform them of bad actors in their district.