A Nicholasville woman who owns a tax return preparation business admitted in federal court on Tuesday that she knowingly failed to report more than $100,000 in business income on her own tax return, according to a release from the U.S. Attorney's Office.
Elizabeth Chestine Stewart, 50, pleaded guilty to filing a false federal income tax return for 2004.
She also admitted that she knew her tax return didn't include $121,612 of income that she made in her tax return preparation business, United Tax Service in Nicholasville.
By failing to report her business income for 2004 and other years, she owes the IRS $149,208 in taxes in addition to fraud penalties and interest, according to the release.
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Stewart was indicted in December 2010, the release said. She's scheduled to appear for sentencing before U.S. District Court Senior Judge Joseph M. Hood in Lexington on Oct. 17.
Stewart faces a maximum prison sentence of three years.