Written by: Current TCCC Resident
Tier 4 residents at the TCCC are under threat and/or coercion to participate in MTC’s Work Program. All tier 4’s are required to work, supposedly for the sole purpose to save money for their release to the community. Both MTC and Correct Care Recovery Solutions/Well Path (CCRS), filed 1099’s with the Internal Revenue Services, listing all RESIDENTS AS CONTRACT WORKERS, when in fact we’re EMPLOYEES. Neither entity reported to the IRS that they automatically, for TCCO, deduct 33% of a resident’s pay, without a court order. Furthermore, because residents are told when to work, how long to work, and where to work, we are in fact employees of MTC. MTC is in violation of federal tax laws. MTC’s Resident Work Program is not therapeutic. The only jobs available are: (1) kitchen workers/dishwashers; (2) maintenance workers; and (3) janitorial services. Residents are not being provided a skill that they can possibly excel in upon their release from the TCCC.
The Resident Work Program does not comport with IRS’s guidelines when it comes to differentiating CONTRACT WORKERS from EMPLOYEES, the Resident Work Program is a sham and clearly is manipulated by MTC and CCRS so that they don’t have to pay FICA (Social Security and Medicare benefits).
The test to determine whether a worker is an employee rather than an independent contractor is whether the employer has the right to control the progress, details, and methods of operations of the work. Resident workers are told: when to report to work, how to do the work, when to take a lunch break, and all tools are provided by both private entities, 26 U.S.C. $ 7434(a) provides:
If any person willfully files a fraudulent information return with respect to payments purported to be made to any other person, such other person may bring a civil action for damages against the person so filing such return.
In order for residents at the TCCC to establish a claim of tax fraud under 26 U.S.C. $7434 (a) it must be proved that (1) both MTC and CCRS issued an information return; (2) the information return was fraudulent; and (3) both MTC and CCRS willfully issued a fraudulent information return.
Rather than MTC and CCRS report on the 1099 Forms that they automatically deduct 33% from a Resident Worker’s monthly pay, both MTC and CCRS reported resident workers’ gross pay for the year. This is fraud, as well as against the law.
Because of this scheme, resident workers are not able to gain earned income credit, and because the hours are at a bare minimum, residents are unable to save income towards their retirement. Both MTC and CCRS, realize that resident workers will not make enough to pay taxes, and therefore depend upon resident workers to not file their income tax returns. If residents don’t file their yearly income tax returns, then the scheme works. Either way, both MTC and CCRS are required by law to pay FICA for its employees. Resident workers are not INDEPENDENT CONTRACTORS, but merely EMPLOYEES that are being cheated.
Director McLane also imposed upon residents to pay 33% of their stimulus money that was received from the federal government. If residents do not pay the 33% from their stimulus checks, they will not be allowed to advance in tiers; and will lose privileges until the 33% is paid. This is extortion! The federal government has already declared that stimulus money is not earned income.