The purpose of investigating tax crimes is to promote deterrence from tax cheating. Prosecuting tax evasion is about simple honesty and fair play between citizens that pay their fair share and those that willfully do not.

The Investigations Division is the law enforcement segment of the ALDOR. Our mission is to investigate potential criminal violations of the tax laws of the state of Alabama and other financial crimes in an effort to promote compliance with the law. Special agents in this division are duly sworn law enforcement officers who are trained to investigative highly complex financial crimes. All income earned, whether legal or illegal, has the potential of becoming involved in crimes that will be investigated and recommended for criminal prosecution by the agents of this division.

Revenue shortages resulting from cheating may inevitably influence tax increases on everyone just to maintain the same level of funds for important government services – education, roads, public safety, and medical care. Tax rate increases on everyone for an unfair reason is certainly unjust.

Contact Information

To report possible tax fraud: taxfraud@revenue.alabama.gov

Common Badges of Fraud

• Omission of specific items of income when similar items are included
• Concealment of records
• Bank deposits from unexplained sources substantially exceeding reported income
• Double sets of books
• Failure to keep adequate records
• Refusal to make certain records available
• Unnumbered or irregularly numbered invoices
• Backdating documents
• False entries or alterations of the books
• Attempt to hinder or obstruct an examination
• Destruction of books and records, especially if just after the examination started
• Co-mingling of business and personal monies
• Frequent change of accountants or tax preparers
• Pattern of consistent failure to fully report income over a period of years
• Inadequate explanation of large sums of currency or the unexplained expenditure of large sums of currency
• Substantial overstatement of deductions
• Substantial amount of personal expenditures charged to deductible business expenses
• False invoices or other false documents
• Omissions of entire sources of income
• Absence of proper financial controls

Forms

• Report Identity Theft
• Report Tax Evasion/Fraud
• Power of Attorney

Criminal Investigations

• Criminal Tax Offenses
• Tax Evasion