A Mathews couple has pleaded guilty to conspiring to impair and obstruct the IRS in the ascertainment and assessment of federal income taxes from 2001 through 2010. Kathryn Charles Miles and her husband, John Scott Miles, will be sentenced this summer.

Kathryn Miles, who was charged in October of last year, pleaded guilty Saturday in U.S. District Court in Norfolk and John Miles pleaded Tuesday, according to spokesman Peter Carr of the U.S. Attorney’s Office in Virginia.

At her plea hearing, Kathryn Miles admitted to earning taxable income as a nurse at various Virginia hospitals and with her husband as an owner and operator of a construction business named "Scotts Construction" and "KCM Construction & Design." The couple admitted that in 2001 they joined American Rights Litigators, a business they knew sold and promoted abusive tax schemes, and maintained an annual membership.

Kathryn Miles also admitted that, in 2005 and 2006, she submitted six tax returns to the IRS in which she falsely claimed she earned no wages and in which she did not disclose the operation of her construction business. She submitted falsified tax documents with each tax return she filed with the IRS, and John Miles admitted he did not file tax returns for tax years 2004 and 2005.

The defendants were released on bond pending sentencing. Sentencing for Kathryn Miles is set for June 30 and sentencing for John Miles is set for July 11. Both face a maximum potential penalty of five years in prison and a $250,000 fine, and both have agreed to pay all taxes, interest and penalties, according to Carr.

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