A Houston woman admitted on Mar. 27 to helping prepare false tax returns while concealing her involvement, according to Acting U.S. Attorney John G.E. Marck.
The case highlights the risks of fraudulent tax preparation and the efforts by federal authorities to address such crimes. Jamie Nevid Wallace, owner of Donahue Tax Service, operated as a so-called "ghost preparer" from 2017 to 2023, making it appear that clients filed their own returns without outside help.
According to the U.S. Attorney's Office, Wallace failed to use her required Provider Tax Identification Number and instead created accounts for clients using tax software in order to hide her role. She prepared false returns that included fraudulent deductions and credits, resulting in refunds her clients were not entitled to receive. As part of her plea agreement, Wallace admitted she filed a false income tax return for 2021 with over $68,000 in fake Schedule A deductions and more than $36,000 in losses for a business that did not exist. The fraudulent entries caused an $18,075 loss to the Internal Revenue Service (IRS). In total, she accepted responsibility for causing $244,824 in losses and agreed to pay restitution.
Wallace faces up to three years in federal prison and a possible fine of up to $250,000 when sentenced by U.S. District Judge Alfred H. Bennett on June 25. She was allowed to remain free on bond until then.
The IRS Criminal Investigation division led the investigation into this case; Assistant U.S. Attorney Brad Gray is prosecuting it.
The U.S. Attorney for the Southern District of Texas is part of the Department of Justice under the Attorney General according to its official website. The office has locations across Houston, Galveston, Corpus Christi, Laredo, McAllen and Brownsville as described on its website and employs more than 200 attorneys covering cases throughout 43 counties with over nine million residents according to official details. Its main focus includes prosecuting federal crimes and handling civil matters involving government interests as outlined by its mission statement.
Past leaders at this office have included Alamdar Hamdani (2022-2025) and Ryan Patrick according to its history page.
