HOUSTON, Texas — A local woman has confessed to aiding in the preparation of fraudulent tax returns, according to Acting U.S. Attorney John G.E. Marck.
From 2017 to 2023, Jamie Nevid Wallace, of Houston, Texas, owned Donahue Tax Service and operated as a “ghost preparer” to hide her involvement in the scheme. Wallace made it appear that clients were filing their own returns without assistance. She was required to use a Provider Tax Identification Number on returns she prepared but instead concealed her role by creating accounts for clients using tax preparation software.
Wallace prepared false tax returns with fraudulent Schedule A deductions and Schedule C business and education credits, generating refunds her clients were not entitled to receive. She also charged fees for these 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 non-existent business, and a false education credit for expenses supposedly paid to a local university. These false entries resulted in an $18,075 tax loss…