U.S. Attorney for north Alabama presents tax fraud case in national crackdown

GADSDEN – The top federal prosecutor for north Alabama, a district that includes Etowah County, took a place at a national Justice Department announcement last week to spotlight a Birmingham-area tax fraud case.

U.S. Attorney Phillip W. Williams Jr. of the Northern District of Alabama joined the Justice Department’s National Fraud Enforcement Division and state and federal law enforcement partners for a press conference announcing a set of fraud enforcement actions across the Southeast. His office was one of a small number chosen to present a case.

What is the case?

The case is United States v. Michael Shine.

Shine is a tax preparer based in the Birmingham area who owns and operates Shine’s Professional Services. According to the complaint, he filed and caused to be filed thousands of tax returns falsely claiming energy tax credits that prosecutors describe as baseless and fraudulent.

The Justice Department put the loss at almost $70 million in its national announcement. The figure cited in Alabama coverage of the same announcement was more than $65 million.

Shine has been taken into custody.

These are allegations. A defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt, and a complaint is an accusation rather than evidence.

What are energy tax credits?

Federal energy tax credits reduce what a taxpayer owes when they make certain qualifying improvements, such as insulation, efficient windows and doors, heat pumps or solar equipment.

They are legitimate and widely used. They are also a recurring target in return preparer fraud cases, because the credit is claimed on the return itself and the taxpayer often does not know what was entered on their behalf.

Why should Etowah County readers care?

Two reasons.

The first is the prosecutor. Williams is from this county. He practiced law in Gadsden for more than two decades and represented Etowah County in the Alabama Senate. Federal cases arising here run through his office. We reported separately on who he is and what the office covers.

The second is more practical. Return preparer fraud cases matter to ordinary filers because the person whose name is on the return is responsible for what it says, even when someone else prepared it. If a preparer claimed credits a taxpayer did not qualify for, the taxpayer can be the one who ends up owing the money back.

That is not a comment on anyone who used any particular preparer. It is the general rule, and it is why these cases get attention beyond the person charged.

What did Williams say?

Williams framed the case as part of continuing work rather than a one-time action.

“We are committed in our State to continue doing what it takes to combat fraud,” Williams said. “The Northern District of Alabama will continue this fight because it is a fight worth having.”

He also thanked the assistant U.S. attorneys involved in the office’s fraud casework.

What else was announced?

The Justice Department announcement covered several districts across the Southeast, with cases including a Louisiana charter school executive accused of diverting federal funds, a North Carolina tax preparation business owner who pleaded guilty in a COVID-19 credit scheme causing nearly $25 million in loss, and a South Carolina case involving false statements in health care matters.

The department also announced the formation of federal-state anti-fraud task forces in North Carolina, Mississippi and Florida, along with new cooperation agreements with those states.

Alabama was not among the states named in that task force announcement, though the Northern District presented one of the featured cases.

How do I protect myself at tax time?

A few things apply regardless of this case.

Read the return before it is filed. Ask what credits are being claimed and why you qualify.

Be cautious of a preparer who promises a refund amount before seeing your documents, or whose fee is a percentage of the refund.

Make sure the preparer signs the return and includes their preparer tax identification number. A return marked self-prepared when someone else prepared it is a warning sign. The Justice Department’s presentation on the Shine case included an example of a self-prepared attestation seized during a search warrant.

Keep your own copy of everything filed.

Frequently asked questions

Who is charged? Michael Shine, a Birmingham-area tax preparer who owns and operates Shine’s Professional Services.

What is he accused of? Filing and causing to be filed thousands of tax returns falsely claiming energy tax credits.

How much money is involved? The Justice Department cited almost $70 million in loss. Alabama coverage of the announcement cited more than $65 million.

Has he been convicted? No. He is charged by complaint and is presumed innocent unless and until proven guilty.

Is this case in Etowah County? No. It arises in the Birmingham area, but it is prosecuted by the Northern District of Alabama, which includes Etowah County.

Who is the U.S. Attorney? Phillip W. Williams Jr., who was sworn in May 28, 2026.

Read more Gadsden and Etowah County news from GadsdenThrive.