A Michigan woman admitted filing federal tax returns that understated her income by more than $1.6 million, with prosecutors saying the money included cash taken from her employer and gambling proceeds. According to the IRS, Erin Patti-Coveyou of Moran, Michigan, pleaded guilty to making a false statement on a federal income tax return and is due to be sentenced later this year. The case involves several years of tax filings and a separate agreement to repay more than $1.75 million that she embezzled from her employer. The Internal Revenue Service says the understatement of income left the government with a tax loss of $535,605. Patti-Coveyou now faces up to three years in federal prison.
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