,i  #aad? ,,congress  #b;d ,session  ,h4
 ,r4 #ejjh  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,april #bj1 #bjaf ,mr4
 ,mac,arthur 7= himself & ,mr4 ,k9d7    
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to direct ! ,secret>y ( !      
,treasury to improve tax compliance 9 ! 
con/ruction indu/ry1 includ+ cl>ify+ !  
employm5t /atus ( s]vice provid]s 9 !   
con/ruction indu/ry1 & = o!r purposes4  
#a4 ,%ort title2 f9d+s2 purposes  7a7   
,%ort title ,?is ,act may be cit$ z !   
,cl>ify ,work]s ,misclassification 9 !  
,con/ruction ,indu/ry ,act4  7b7 ,f9d+s 
,congress makes ! foll[+ f9d+s3  7#a7   
,work] misclassification 9 ! con/ruction
 indu/ry has rea*$ epidemic proportions4
 ,/udies f ,cali=nia1 ,t5nessee1        
,florida1 ,texas1 ,new ,j]sey1 & o!r    
,/ates detail hundr$s ( millions (      
doll>s 9 lo/ employm5t & income taxes   
because ( improp] classification (      
work]s = taxation 9 ! con/ruction       
indu/ry4 ,new ,j]sey rev5ue collection  

(ficials h indicat$ t #ece million 9    
taxes 9 ! ,/ate are lo/ due to work]    
misclassification4  7#b7 ,work]         
misclassification takes place at        
con/ruction projects involv+ milit>y    
bases1 hospitals1 univ]sities1 conv5tion
 c5t]s1 & major hotels4  7#c7 ,!re is   
significant anecdotal evid5ce t a l>ge  
numb] ( work]s 9 ! con/ruction indu/ry  
are curr5tly be+ misclassifi$ z         
indep5d5t contractors 9 ord] to avoid   
tax )hold+ & o!r employ]                
responsibilities1 b ! ,int]nal ,rev5ue  
,s]vice is b>r$ f issu+ rules or        
guidance to reclassify ^! work]s by     
section #ecj ( ! ,rev5ue ,act ( #aigh4  
7#d7 ,legitimate con/ruction contractors
 are unable to compete ) contractors :o 
avoid employm5t & income taxes ?r\gh    
misclassification4 ,?is creates         
competitive pressure on o!r contractors 
to also misclassify employees to rema9  
competitive4 ,/ates1 lead+ contractors1 
& con/ruction labor lead]s agree t      
gov]nm5t action is ne$$ to rev]se ?is   

spiral4  7#e7 ,accord+ to ! ,int]nal    
,rev5ue ,s]vice1 a doll> sp5t on tax    
en=cem5t typically yields an additional 
six doll>s 9 rev5ue to ! ,treasury4 ,?is
 figure does n include rev5ue ga9$ f    
det]r+ misclassification :i* w\ld       
increase tax rev5ue significantly beyond
 ! level project$4  7c7 ,purposes ,!    
purposes ( ?is ,act are to increase     
ef=ts to id5tify & r$uce                
misclassification1 to prosecute tax     
evasion 9 ! con/ruction indu/ry1 &      
provide ! ,secret>y ( ! ,treasury !     
res\rces necess>y to accompli% ^!       
objectives4  #b4 ,directives &          
au?orities to improve tax compliance 9 !
 con/ruction indu/ry  7a7 ,en=cem5t     
actions ,! ,secret>y ( ! ,treasury %all 
initiate an en=cem5t initiative aim$ at 
increas+ tax compliance 9 ! con/ruction 
indu/ry4 ,measures tak5 to implem5t ?is 
initiative %all include3  7#a7          
,consultations ) indu/ry exp]ts & lead]s
 on ! scope & priorities ( ?is          
initiative1 includ+ ! ,secret>y (       

,labor1 ,/ate gov]nm5t (ficials1 !      
,g5]al ,acc\ntability ,(fice1 lead+     
private sector con/ruction              
organizations1 & labor organizations    
involv$ 9 ! con/ruction indu/ry4  7#b7  
,t>get$ tax audits ( major con/ruction  
contractors t ! ,secret>y f9ds reason to
 believe may n be 9 compliance )        
applicable ,f$]al tax laws4  7#c7 ,civil
 & crim9al tax en=cem5t actions "u exi/+
 legal au?orities4  7#d7 ,educational   
ef=ts aim$ at entities 9 ! con/ruction  
indu/ry to increase volunt>y tax        
compliance4  7b7 ,au?ority ,to issue    
guidance cl>ify+ employm5t /atus =      
purposes ( employm5t taxes  7#a7 ,9     
g5]al ,not)/&+ any o!r provision ( law  
includ+ section #ecj ( ! ,rev5ue ,act ( 
#aigh1 ! ,secret>y %all promulgate rules
 & issue guidance to reclassify         
individuals :o are n curr5tly be+ treat$
 z employees consi/5t ) ! prop]         
classification ( employees "u common law
 /&>ds )9 ! con/ruction indu/ry4  7#b7  
,re/riction to con/ruction indu/ry ,any 

rules or guidance "u p>agraph 7#a7 %all 
apply only ) respect to s]vices provid$ 
)9 ! con/ruction indu/ry4  7#c7         
,effective date ,any rules or guidance  
"u p>agraph 7#a7 %all n take effect be=e
 ! date :i* is #ahj days aft] ! date ( !
 enactm5t ( ?is ,act4  7c7 ,res\rces ,! 
,secret>y %all reassign p]sonnel &      
res\rces f o!r activities to c>ry out   
?is ,act4  7d7 ,ov]sight & review  7#a7 
,annual reports by ,treasury ,!         
,secret>y %all submit an annual writt5  
report to ! ,committee on ,ways & ,means
 ( ! ,h\se ( ,repres5tatives & !        
,committee on ,f9ance ( ! ,s5ate reg>d+ 
! implem5tation ( ?is ,act toge!r ) any 
recomm5dations = fur!r action by        
,congress :i* w\ld be consi/5t ) !      
purposes ( ?is ,act4  7#b7 ,/udy &      
report by ,comptroll] ,g5]al ,!         
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all conduct a compreh5sive /udy ( !    
v>i\s =ms ( tax fraud1 includ+ employee 
misclassification1 9 ! con/ruction      
indu/ry1 ef=ts to combat su* fraud1 &   

recomm5dations = fur!r action4 ,n lat]  
?an ,june #cj1 #bjag1 ! ,comptroll]     
,g5]al %all submit a writt5 report to ! 
,committee on ,ways & ,means ( ! ,h\se (
 ,repres5tatives & ! ,committee on      
,f9ance ( ! ,s5ate detail+ ! results (  
su* /udy4  7e7 ,def9itions ,= purposes (
 ?is section-- 7#a7 ,con/ruction indu/ry
 ,! t]m con/ruction indu/ry means all   
g5]al contractors & op]ative build]s    
prim>ily engag$ 9 ! remodel+1 addition1 
or con/ruction ( resid5tial1 f>m1       
indu/rial1 comm]cial1 or o!r build+s    
includ+ :>ves or o!r /ructures atta*$ to
 l&4  7#b7 ,secret>y ( ! ,treasury ,!   
t]ms ,secret>y ( ! ,treasury & ,secret>y
 mean ! ,secret>y ( ! ,treasury or !    
,secret>y's designee4  7f7 ,t]m9ation   
,?is section1 & any rules promulgat$ or 
guidance issu$ "u subsection 7b71 %all  
cease to h any =ce or effect aft]       
,septemb] #cj1 #bjba4