MORAN, MI— A Mackinac County woman has pleaded guilty in federal court to not reporting all her income to the IRS.
U.S. Attorney for the Western District of Michigan, Timothy VerHey, says Erin Patti-Coveyou, 36, of Moran, pleaded to making a false statement on a federal income tax return.
From 2021 through 2024, Patti-Coveyou failed to report $1,666,499.78 of income to the Internal Revenue Service when she filed false U.S. Individual Income Tax Returns on Form 1040 in each of those years. For example, in 2022, she falsely reported her 2021 income was $353,055. In fact, she had obtained an additional $279,079.12 of income from embezzling cash from her employer and her gambling activity. Additionally, for calendar years 2022 and 2024, she underreported her income as $39,960; $53,188; and $56,545, when in fact her true income in those years was $424,882; $461,300; and $650,931, respectively.
Her failure to report income resulted in a total federal income tax loss of $535,605.
Patti-Coveyou also agreed to repay a total of $1,751,059 that she embezzled from her employer between 2021 and 2025.
She faces a maximum of three years in prison and will be sentenced later this year.
