Tax Fraud

The United Brotherhood of Carpenters is making a big push to combat Tax Fraud across the country. Listed are six warning signs of Tax Fraud on the job.

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  1. Employees are paid in cash.
  2. Employees receiving personal or company checks without any taxes being withheld.
  3. Employees are being misclassified as “Independent Contractors” and being issued a 1099 tax form at the end of the year.
  4. Piecework pay versus actual hourly pay.
  5. Not being paid overtime.
  6. Using an undocumented workforce.

A recent study found that the State of Illinois loses out on $186 million in lost revenue every year due to tax fraud. The Mid-America Carpenters Regional Council established a Tax Fraud Task Force to investigate tax fraud in our area. We have reached out and met with several State Agencies: including the Illinois Department of Labor, the Attorney’s General Office and the Illinois Workers Compensation Commission. Illinois Comptroller Susana Mendoza signed an executive order requiring her office to monitor state contracts for Prevailing Wage Compliance. Another victory in combatting this issue was the creation of a Worker Protection Unit within the Office of the Attorney General which protects workers from wage theft and other unlawful employment practices.

The Mid-America Carpenters Regional Council Tax Fraud Task Force is looking into various targets, project types and government agencies that fund these projects. If you have been of victim of Tax Fraud, please don’t hesitate to call our hotline at the following numbers:

  • Central: 630-368-3540
  • Rock Falls: 815-626-2396
  • Springfield: 217-744-1419

Honest contractors can make a difference in our fight against construction industry tax fraud. For additional information, go to:

U.S. Department of Labor to Withdraw Independent Contractor Rule

The U.S. Department of Labor today announced the withdrawal – effective May 6 – of the “Independent Contractor Rule,” to maintain workers’ rights to the minimum wage and overtime compensation protections of the Fair Labor Standards Act. This is very good news! We got a victory here!

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