Jamie Nevid Wallace, Tax Return Scheme, Texas 2023

HOUSTON, TX – A local woman has been brought to justice for her role in a brazen tax return scheme that left the IRS with a hefty bill.

According to court documents, Jamie Nevid Wallace, owner of Donahue Tax Service, operated as a ‘ghost preparer’ to conceal her involvement in the scheme. As such, she made it seem that clients were filing their own returns without the assistance of anyone else.

Wallace was required to obtain and use a Provider Tax Identification Number on any returns she prepared but instead concealed her role by creating accounts for her clients using tax preparation software.

The scheme wasn’t limited to just concealing Wallace’s role; she also prepared false tax returns that included fraudulent Schedule A deductions and Schedule C business and education credits, which generated refunds her clients should not have received. She also charged fees for those returns.

As part of her plea, Wallace admitted to filing a false 2021 income tax return that included $68,453 in false Schedule A deductions, $36,852 in false Schedule C losses for a business that did not exist, and a false education credit showing expenses supposedly paid to a local university. These false entries resulted in $18,075 in tax loss.

Wallace has admitted responsibility for $244,824 in losses to the IRS and has agreed to pay that amount in restitution. U.S. District Judge Alfred H. Bennett will impose sentencing on June 25, at which time Wallace faces up to three years in federal prison and a possible $250,000 maximum fine.

She was permitted to remain on bond pending that hearing. IRS Criminal Investigation conducted the investigation, and Assistant U.S. Attorney Brad Gray is prosecuting the case.

The case serves as a stark reminder of the importance of vigilance when it comes to tax preparation. It’s a timely warning to those who would seek to cheat the system.

Wallace’s actions not only put her clients at risk but also undermined the integrity of the tax system as a whole.

The Grimy Times will continue to follow this case and provide updates as more information becomes available.

Related Federal Cases