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Tax Fraud Days of Action 2021

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The Indiana/Kentucky/Ohio Regional Council of Carpenters joined UBC members across the United States and Canada to raise awareness for construction industry tax fraud. Check out highlights from IKORCC Tax Fraud Days of Action events in Indiana, Kentucky and Ohio.

Indiana Tax Fraud Day of Action Event

The Tax Fraud Day of Action event in Indianapolis was a tremendous success. Business representatives and members of the IKORCC Executive Board spent a few hours educating lawmakers on tax fraud, with a special emphasis on solutions to tax fraud. Of the 150 elected officials invited, 62 lawmakers, both republican and democrat, visited the event and learned more about construction industry tax fraud. Indianapolis Mayor Joe Hogsett also attended the event.

The Indiana event was held at the Indiana State House atrium. To drive attendance to the event, IKORCC reps handed out tax fraud toolbox/lunchboxes packed with concrete solutions to fight tax fraud. The theme of the giveaway was, “You already have all the tools you need to fight tax fraud”. The toolboxes were a big driver to our event.

The solutions inside included: enforcing existing laws, creating a tax fraud task force, sharing information amongst government agencies and responsible bidder ordinances or RBOs.

In addition to the in-person event, the IKORCC created a new website, endtaxfraud.com. The website focuses on the actual solutions to tax fraud and what lawmakers and the public can do to help.

 

Kentucky Tax Fraud Day of Action Events

We held a two day Tax Fraud Awareness event in Louisville, Kentucky this year. On the first day, we visited a dorm under construction at the University of Louisville, with predominantly union subcontractors. We educated members of all crafts about Tax Fraud and how important it is to get involved politically with elected officials to help eliminate this illegal business model. It was an extremely successful event. We also educated and built relationships with company management teams.

On the second day, we took our messaging to a non-union led job site in Louisville. We used this as an opportunity to educate owners, workers and management teams while also gathering info on Labor Brokers, potential future members, and accurate counts of employees being paid cash or with a 1099. This gave us a new angle on how to fight tax fraud.

Ohio Tax Fraud Day of Action Event

Tax Fraud Days of Action in Columbus was a successful day of educating legislators and the public on why tax fraud is a danger to everyone. Legislators from both sides of the aisle and even some who we didn’t have a previous relationship with us, showed up to learn more about tax fraud. Legislators loved the tax fraud lunchboxes and were excited to talk about upcoming projects in their areas and what our organization has going on.

All IKORCC Representatives onsite had legislators from their area represented in the turnout.

Check out a video interview with Democrat House Minority Leader Emilia Sykes about tax fraud.

Here is another video with Republican House Representative Jay Edwards

Former Industrial Representative and UBC instructor Steve Griffith also stopped by and gave us an interview.

Indianapolis Mayor Joe Hogsett Talks Tax Fraud at Indiana Statehouse

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Lawmakers, contractors, and construction workers in Indianapolis are preparing for Days of Action events to bring attention to the growing problem of tax fraud in the construction industry.

Over 100 Indiana lawmakers, contractors & construction workers will gather at the Indiana Statehouse on Monday, April 15th, 2019 from 11:00 a.m. to 1:00 p.m. in the north atrium to shine a spotlight on the corrupt practices of illegitimate contractors who steal billions of dollars from our communities – money that should be spent on education, public safety and infrastructure. Tax fraud is just one aspect of the illegal business practices plaguing the industry, along with wage theft, independent contractor misclassification, and workers’ compensation insurance fraud.

Indianapolis Mayor Joe Hogsett will share his thoughts on tax fraud in Indianapolis and how it hurts the city. Mayor Hogsett addresses the crowd at 12:15 p.m. “It’s tax fraud, because it’s the taxes that you and I pay that are being manipulated,” said Joe Hogsett, Mayor of Indianapolis. “From neighborhood-based programs to major initiatives, to the public/private partnerships that drive our city forward – all of these things are only possible when everyone pays their fair share.”

The Construction Industry Partnership will be joined by the Indiana Kentucky Ohio Regional Council of Carpenters, state & local lawmakers and some of the state’s most prominent business owners in the fight to crack down on these destructive and illegal business practices.

The fraud comes when workers are paid off the books by shady subcontractors and labor brokers, who are hired by contractors to underbid law-abiding businesses. Fraud happens on all types of projects, including taxpayer-funded projects—which means we all lose.  Rampant cheating in the construction industry makes it difficult to repair roads

Construction industry tax fraud and related crimes and violations are happening every day on large-scale projects, costing Hoosier communities an estimated $405 million dollars statewide in lost federal and state taxes.

Recovering unpaid tax dollars in Indiana could pay for:

  • 8,741 state troopers
  • 7,937 teachers
  • 325 miles of resurfaced highways
  • 783 small business loans

The April 15th rally in Indianapolis is part of the nationwide Construction Industry Tax Fraud Days of Action by the United Brotherhood of Carpenters and Joiners of America to raise awareness and generate action against tax fraud and related crimes.

About the Construction Industry Partnership:

Representing the carpenters union and over 700 contractors throughout the state of Indiana, the Construction Industry Partnership is dedicated to create a lasting and positive impact on the construction industry. By acting as one unit, the CIP can advocate for change at a political level, demand high standards are enforced and recruit top talent throughout the state.

Indianapolis Mayor Joe Hogsett Helps Fight Tax Fraud

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In March, Indianapolis Mayor Joe Hogsett visited the IKORCC to discuss the growing issue of tax fraud and the effects it has on responsible contractors, the city, and taxpayers.

Tax fraud occurs when companies misclassify workers who should be employees in order to avoid paying their fair share of unemployment insurance and federal, state and local taxes. Companies that commit tax fraud are often able to give lower bids on projects since they aren’t paying their share of taxes – a practice which makes it difficult for responsible contractors to compete fairly.

“Everybody ought to have the right to compete fairly,” Mayor Hogsett said while addressing contractors.  “I want to be clear – what the city seeks to do is not to pick winners and losers. Our job is to make sure everyone is operating on a level playing field,” Hogsett added.

Mayor Hogsett also acknowledged that the IKORCC has been at the forefront of the battle against tax fraud. “The carpenters have really taken a leadership role in this regard,” he said.

In response to the growing tax fraud problem in the construction industry, Mayor Hogsett says he put together a working group to explore the ordinances in place within the city and the means of enforcing these policies. “The ordinance is a bit vague in the enforcement area,” he said, adding that he hopes to have an enforcement officer in place in the future to cut down on tax fraud.

The IKORCC has seen an increase in the prevalence of tax fraud in Indiana, Kentucky, and Ohio and hopes to work with Mayor Hogsett and the working group to help curtail the issue.

Click here to learn more about tax fraud.