An accountant placed on five years federal probation for preparing false income tax returns has canceled his license to practice in Utah and agreed with state licensing regulators not to renew it for five years, a stipulation and order said.

The agreement settles a petition brought against Emmett J. King by the state Division of Occupational and Professional Licensing. The petition, filed a year after King's conviction, accuses King of violating the state's Public Accountancy Act by being convicted of a crime.King, now residing in Tempe, Ariz., was indicted in April 1989 by a federal grand jury on 25 separate counts of conspiracy, false statements, aiding and abetting and preparing false income tax returns. The charges stemmed from a complex tax shelter fraud involving his practice as a certified public accountant, the stipulation said.

King pleaded guilty to one count of preparing a false tax return and was placed on five years probation and ordered to pay a $5,000 fine, the stipulation said. A condition of the probation was that King refrain from giving advice about tax shelters.