Alabama Man Charged with Preparing False Tax Returns

A federal grand jury in Alabama charged Michael Shine, 55, with preparing false tax returns for clients and himself between 2021 and 2026. The indictment alleges he falsified information about geothermal heat pump property costs to secure improper refunds for clients. Shine’s tax preparation business, Shine’s Professional Services, is accused of filing returns claiming over $70 million in refunds, with $65 million paid out. The scheme continued even after a search warrant was executed at his business.

The Justice Department’s National Fraud Enforcement Division and U.S. Attorney Phillip W. Williams Jr. announced the charges, emphasizing the responsibility of tax preparers to comply with tax laws. Assistant Attorney General Colin M. McDonald stated the alleged fraud exploited federal energy-credit programs and misused public funds. The case reflects broader efforts to combat fraud against government programs, including President Trump’s Task Force to Eliminate Fraud.

Special Agent in Charge Demetrius Hardeman of the IRS Criminal Investigation Atlanta Field Office highlighted the harm caused by fraud to honest taxpayers and the erosion of trust in the tax system. The IRS and Justice Department’s collaboration aims to identify and prosecute individuals exploiting government programs. The investigation utilized advanced tools and nationwide expertise to uncover the scheme, which allegedly involved widespread false claims.

Shine faces up to three years in prison per count if convicted on 30 counts of aiding false tax returns and three counts of filing false personal returns. The indictment follows a prior federal complaint, and all defendants are presumed innocent until proven guilty. The case is part of a broader crackdown on fraud, including recent guilty pleas in unrelated tax fraud cases across the U.S.