Clarify Workers Misclassification in the Construction Industry Act

Clarify Workers Misclassification in the Construction Industry Act

This bill requires the Department of the Treasury to initiate an enforcement initiative to increase tax compliance in the construction industry.

The initiative must include:

• consultations with industry experts and leaders on its scope and priorities,
• targeted tax audits of major construction contractors that may not be in compliance with federal tax laws,
• civil and criminal tax enforcement actions under existing authorities, and
• educational efforts aimed at increasing voluntary tax compliance in the construction industry.

Treasury must promulgate rules and issue guidance to reclassify individuals who are not currently being treated as employees consistent with the proper classification of employees under common law standards within the construction industry.

In implementing this bill, Treasury must: (1) reassign personnel and resources from other activities to carry out this bill, and (2) report to Congress on the implementation and recommendations for further congressional action.

The Government Accountability Office must study the various forms of tax fraud (including employee misclassification) in the construction industry, efforts to combat fraud, and recommendations for further action.