Houston, Texas – A Houston woman who ran a tax business for years has admitted in federal court that she helped prepare false tax returns, according to an announcement from Acting U.S. Attorney John G.E. Marck.
Jamie Nevid Wallace, who owned Donahue Tax Service, acknowledged that from 2017 through 2023 she worked as a so-called ghost preparer, hiding her role in the returns she handled. Prosecutors said that instead of properly identifying herself as the paid preparer, she made it appear as though clients were submitting their own returns. She was required to use a Provider Tax Identification Number on returns she prepared, but instead avoided doing so by creating client accounts through tax preparation software.
Authorities said the returns Wallace prepared contained false information that boosted refunds her clients were not entitled to receive. Those filings included fraudulent Schedule A deductions as well as false Schedule C business losses and education credits. She also collected fees for preparing those returns.
As part of her guilty plea, Wallace admitted that she filed a false personal income tax return for 2021. That return included $68,453 in bogus Schedule A deductions, $36,852 in false Schedule C losses tied to a business that did not exist, and an education credit based on expenses she claimed were paid to a local university. Federal officials said those false entries caused a tax loss of $18,075.
Wallace also admitted that her conduct caused a far larger financial hit overall. She accepted responsibility for $244,824 in losses to the Internal Revenue Service and agreed to pay that full amount as restitution.
Her sentencing is scheduled for June 25 before U.S. District Judge Alfred H. Bennett. She faces a sentence of up to three years in federal prison as well as a possible fine of up to $250,000. For now, she has been allowed to remain free on bond while awaiting that hearing.
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Brad Gray is handling the prosecution.
