Carson City accountant Roger Steele has pleaded guilty to preparing a false individual income tax return for best-selling author Dale Brown.
His wife, Kimberly, who practices in Reno, pleaded guilty to trying to obstruct the IRS audit of the case.
Both face a possible three years in prison and fines of up to $250,000.
Steele will be sentenced Dec. 29 by District Judge Larry Hicks and Steele's wife will be sentenced March 16.
Steele is the owner of Steele Accountancy. According to court records, Steele helped Brown form two offshore corporations in 1998 and 1999 and advised him on how to transfer money from his domestic corporation to the offshore business entities. Then, according to the records, Steele advised Brown to have those offshore companies bill the domestic corporation for services which were never provided as a way to cut his taxes.
Roger Steele, the court records say, also advised Brown he could return the money back to the United States disguised as loans or by using credit cards.
Steele admitted preparing two false tax returns for Brown - one with fraudulent business deductions of more than $450,000 and another which understated Brown's personal tax liability by $223,000.
Kimberly Steele admitted signing a false affidavit regarding Brown's use of an offshore credit card in the case and presenting it to an IRS auditor.
Brown, who lives in Incline Village, pleaded guilty more than a year ago and was sentenced to six months in prison and three years probation for filing false tax returns. He was fined $25,000.
Brown is the author of several novels based on his experiences as an Air Force pilot including "Wings of Fire," "Warrior Class" and "Battle Born."