--- title: What Is Intentional Disregard in PWA Compliance? description: What Counts as Intentional Disregard—and How to Prevent It --- [Skip to content](https://help.reunioninfra.com/what-is-intentional-disregard-in-pwa-compliance#main-content) [![Reunion_Logo_White (1)](https://help.reunioninfra.com/hs-fs/hubfs/Reunion_Logo_White%20(1).png?width=250&height=92&name=Reunion_Logo_White%20(1).png)](https://help.reunioninfra.com/?hsLang=en) - [Go to reunioninfra.com](https://www.reunioninfra.com/) - [Submit a support ticket](https://help.reunioninfra.com/kb-tickets/new) Open main navigation Close main navigation - [Go to reunioninfra.com](https://www.reunioninfra.com/) - [Submit a support ticket](https://help.reunioninfra.com/kb-tickets/new) - Hi there, how can we help? - There are no suggestions because the search field is empty. 1. [Reunion Help Center](https://help.reunioninfra.com/?hsLang=en) 2. [Regulations](https://help.reunioninfra.com/regulations?hsLang=en) # What Is Intentional Disregard in PWA Compliance? ## What Counts as Intentional Disregard—and How to Prevent It ### What Is Intentional Disregard in PWA Compliance? Intentional Disregard occurs when a taxpayer or contractor **knowingly and willfully fails to comply** with the prevailing wage or apprenticeship (PWA) requirements under the Inflation Reduction Act (IRA). Unlike an oversight or administrative error, it means the rules were understood but **deliberately ignored**. --- #### Why This Matters Violations deemed as Intentional Disregard carry **significantly higher penalties** compared to standard noncompliance: - **Prevailing Wage Penalties** - Standard: $5,000 per affected worker per year - Intentional Disregard: **$10,000 per worker**, plus **triple corrective payments** with interest - **Apprenticeship Penalties** - Standard: $50 per missed labor-hour - Intentional Disregard: **$500 per missed labor-hour** - **Cure payments may not fully resolve penalties** - You may risk **reduced or lost eligibility for full clean energy tax credits** --- #### How the IRS Assesses Intentional Disregard According to the IRS, whether a failure is considered Intentional Disregard depends on the **specific facts and circumstances of each case**. ([IRS FAQ](https://www.irs.gov/credits-deductions/frequently-asked-questions-about-the-prevailing-wage-and-apprenticeship-under-the-inflation-reduction-act?utm_source=chatgpt.com)) Factors that may indicate Intentional Disregard include: - Ignoring repeated notices of noncompliance - Failing to make timely corrections - Maintaining inadequate records - Misclassifying workers to avoid proper wages or apprenticeship ratios - Lack of good faith efforts to meet apprenticeship requirements --- #### How to Avoid Being Classified as Intentional Disregard - **Maintain comprehensive records**: Document wage rates, labor hours, classifications, corrections made, and apprenticeship requests. - **Take prompt corrective action** when noncompliance is identified. - **Regularly review wage determinations** and audit compliance processes. - **Include compliance clauses** in contracts with contractors and subcontractors. - **Document good faith efforts**—especially for apprenticeship requests. --- #### Summary at a Glance | Aspect | Standard Failure | Intentional Disregard | | --- | --- | --- | | Definition | Unintentional or administrative error | Willful neglect despite knowing rules | | Prevailing Wage Penalty | $5,000 per affected worker/year | $10,000 per worker + triple corrective payments | | Apprenticeship Penalty | $50 per missed labor-hour | $500 per missed labor-hour | | Assessment Factors | Documentation errors, isolated lapses | Recurring violations, lack of corrective action | #### **Official IRS Resources** - [**IRS FAQ: Prevailing Wage and Apprenticeship Requirements**](https://www.irs.gov/credits-deductions/frequently-asked-questions-about-the-prevailing-wage-and-apprenticeship-under-the-inflation-reduction-act?utm_source=chatgpt.com) Explains penalties and cure provisions, including how Intentional Disregard is assessed case-by-case. - [**IRS Final Regulations on PWA (T.D. 9998)**](https://www.irs.gov/pub/irs-irbs/irb24-34.pdf?utm_source=chatgpt.com) Provides the official framework for corrections, cure payments, and penalties. - [**IRS News Release (June 18, 2024)**](https://www.irs.gov/newsroom/treasury-irs-release-guidance-on-the-prevailing-wage-and-apprenticeship-requirements-for-increased-credit-and-deduction-amounts-under-the-inflation-reduction-act?utm_source=chatgpt.com) Announces enforcement priorities and guidance related to prevailing wage and apprenticeship compliance.   - [Getting Started](https://help.reunioninfra.com/getting-started?hsLang=en) - [Importing Data](https://help.reunioninfra.com/importing-data?hsLang=en) - [Contractors, Contracts, and Employees](https://help.reunioninfra.com/contractors-contracts-and-employees?hsLang=en) - [Apprenticeship Programs & Good Faith Efforts](https://help.reunioninfra.com/apprenticeship-programs-good-faith-efforts?hsLang=en) - [Penalties & Cure Payments](https://help.reunioninfra.com/penalties-cure-payments?hsLang=en) - [Regulations](https://help.reunioninfra.com/regulations?hsLang=en) - [Account Management](https://help.reunioninfra.com/account-management?hsLang=en) - [Settings Page](https://help.reunioninfra.com/settings-page?hsLang=en) - [Go to reunioninfra.com](https://www.reunioninfra.com/) - [Submit a support ticket](https://help.reunioninfra.com/kb-tickets/new) [![Logo green mark](https://help.reunioninfra.com/hs-fs/hubfs/Logo%20green%20mark.png?width=200&height=33&name=Logo%20green%20mark.png "Logo green mark")](https://help.reunioninfra.com/?hsLang=en) Not investment or legal advice. 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