Finance and Administration Cabinet
Division created to investigate tax violations has successful first year

Press Release Date:  Thursday, June 24, 2010  
Contact Information:  Cindy Lanham
(502) 564-4240


Division created to investigate tax violations has successful first year

FRANKFORT, Ky. (June 24, 2010) – In 2009, legislation was passed to create the Division of Special Investigations within the Kentucky Department of Revenue (DOR) to probe alleged violations of Kentucky’s tax laws and to present such cases for criminal prosecution.  In the year since its inception, investigations conducted by the division have resulted in 50 felony indictments involving tax crimes; more than $300,000 in fraudulent tax refunds have been identified and stopped; and more than $300,000 in restitution has been paid to the Commonwealth. 

“It its first year, the Division of Special Investigations has done an outstanding job of helping to ensure citizens are paying their legal obligation to the state to help sustain the public services and programs funded through tax dollars,” said Jonathan Miller, secretary of the Finance and Administration Cabinet.  “Each year the Commonwealth loses millions of dollars in tax revenue when citizens don’t follow the law.  Not only is it illegal, it’s unfair to the majority of Kentuckians who pay their share.” 

The division also works with DOR’s Motor Vehicle Property Tax Section to track down Kentucky residents who fail to properly register their motor vehicle in an effort to avoid paying local and state taxes collected through vehicle registration. 

Kentucky’s Division of Special Investigations is serving as a role model for other states that are interested in establishing or improving upon existing similar units.  In February 2010, Jason Snyder, the director of the division, spoke at the Federation of Tax Administrators conference in Atlanta about how Kentucky’s team collaborates with federal and local law enforcement agencies to prevent tax violations.  

The Division of Special Investigations works with many other law enforcement agencies to develop cases that may lead to an indictment including the Office of the Attorney General, the Auditor of Public Accounts, the Internal Revenue Service, the Louisville Metro Police Department, the Lexington Division of Police and several locally elected prosecutors throughout the state.