Comments:

The method of employing illegals which contractors seem to favor – 1099 a supposedly independent contractor who pays illegals cash – should be easy to uncover by the most casual IRS audit. Some of the large contractors establish a bona fide independent contractor relationship with the subs but most do not. In any event follow the 1099’s down the food chain and someboy is supposed to be paying payroll taxes.

I’m an independent agent … and I’ve gotten to see this stuff up close and personal. After one of my contractors recorded a large five figure audit premium on a Workers Compensation I received a call from the insurance company premium auditor. After talking it seemed that my insured’s accountant/bookeeper had his name attached to a number of these uncollectibles. There were several other bookeepers, usually allied with a particular insurance broker, who had racked up the same kind of numbers. I don’t know exactly how these guys massage a tax return by the IRS but I doubt any of the returns would stand up to any scrutiny.

In the meantime the legitimate contractor who pays witholding and the sky high workers compensation premiums on real payrolls can’t possibly compete and the American he employes are out of work. With respect to the Cobb County Courthouse job I think the injured parties should demand a complete IRS audit of all of the contractors on the job.

R.M.C.
Gwinnett