What is Tax Fraud?

Tax fraud can mean any number of methods dishonest contractors use to cheat the system, and their workers. Dishonest contractors use tax fraud to evade workers comp, unemployment insurance, and basic payroll taxes by knowingly misclassifying workers as “independent contractors,” paying those "contractors" cash off the books, and running other scams that impact carpenters and their families, along with the broader community and construction industry. Tax fraud practices cost taxpayers billions, hurt honest businesses and exploit workers, depriving them of living the American Dream.

Video: What is Tax Fraud? >

What does Tax Fraud look like?

  • Dishonest contractors misclassify their employees as independent contractors in order to avoid paying taxes.
  • They do not contribute to workers’ compensation or social security.
  • They escape paying overtime or contributing to health insurance.
  • They pay workers in cash, “off the books” or don’t pay them at all.

Video: How Tax Fraud impacts workers >

How does Tax Fraud affect you?

  • You may be unknowingly paying a dishonest contractor who is cheating workers by not paying them what they are owed or working in safe conditions.
  • Dishonest contractors are not paying the taxes that they owe to the government. This increases the burden of taxes on honest contractors who do right by their workers, and may impact the cost of doing business in the construction industry.

Video: How Tax Fraud impacts your community >

More Resources

Centro de Trabajadores Unidos en Lucha (CTUL)
2511 E. Franklin Ave.
Minneapolis, MN 55406
(inside of Bethany Lutheran Church)

Heartland Workers Center
4923 South 24th Street, Suite 3A
Omaha, NE 68107

Workers’ Rights Center/Centro de Derechos Laborales
2300 S. Park Street, Suite 115
Madison, WI 53713

Center for Worker Justice of Eastern Iowa
920 S. Gilbert Court
Iowa City, IA 52240