A Houston woman, Jamie Nevid Wallace, pleaded guilty on Mar. 27 to aiding or assisting in the preparation of false tax returns, according to Acting U.S. Attorney John G.E. Marck.
The case highlights ongoing efforts by federal authorities to address fraudulent tax schemes that impact both taxpayers and government revenue.
According to the announcement, Wallace owned Donahue Tax Service and operated as a “ghost preparer” from 2017 to 2023, concealing her involvement by making it appear clients filed their own returns without assistance. She failed to use a required Provider Tax Identification Number and instead created client accounts using tax preparation software.
Wallace admitted she prepared false returns with fraudulent Schedule A deductions and Schedule C business and education credits, generating refunds her clients were not entitled to receive. As part of her plea agreement, she acknowledged filing a false 2021 income tax return that included $68,453 in fake deductions, $36,852 in losses for a non-existent business, and an education credit based on fabricated expenses. These actions resulted in an $18,075 loss to the Internal Revenue Service (IRS). In total, Wallace accepted responsibility for causing $244,824 in losses and agreed to pay restitution.
Sentencing is scheduled before U.S. District Judge Alfred H. Bennett on June 25. Wallace faces up to three years in federal prison and a possible maximum fine of $250,000 but has been allowed bond until then.
The IRS Criminal Investigation division conducted the investigation while Assistant U.S. Attorney Brad Gray is prosecuting the case.
The U.S. Attorney for the Southern District of Texas employs more than 200 attorneys who cover cases across 43 counties with over nine million residents as detailed on its official website. The office has locations including Houston, Galveston, Corpus Christi, Laredo, McAllen and Brownsville according to its official website. It operates as part of the Department of Justice under the direction of the Attorney General according to its official website and focuses on prosecuting federal crimes as well as handling civil matters for the government according to its official website.
Notable former leaders at this office include Alamdar Hamdani (2022–2025) and Ryan Patrick as noted on its history page.
