Cincinnati (Dec. 17, 2002) -- A Norwood, Ohio, accountant who pled guilty to two federal tax fraud charges will spend more than three years in prison and pay a $25,000 fine.

Nancy Wallace, 55, pled guilty in U.S. District Court in Cincinnati to conspiracy to defraud the Internal Revenue Service and to helping to prepare false tax returns for a client, the Cincinnati Business Courier reported. Her crimes cost the IRS nearly $1 million in unpaid taxes. Wallace, who worked for nearly 20 years in the Norwood area for a number of companies she created, will go to prison for 41 months and pay a $25,000 fine. Her plea deal bars her from ever again working in accounting or tax preparation.

According to the report, Wallace admitted that she and clients created false business and charitable expense deductions and phony invoices to substantiate the false deductions and used more than 25 businesses and trusts to shelter money. She also helped prepare false income tax returns for individuals and businesses, stole clients' money for personal use and failed to repay money she sheltered on their behalf.

She will pay back taxes, penalties and interest to the IRS for evading taxes on her income from 1990 to 2001. Wallace previously served 13 months in prison after pleading guilty to embezzling more than $243,000 from a pension fund and profit-sharing plan in Florida in 1996.

-- Electronic Accountant Newswire staff

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