A Minneapolis woman has admitted to an identity-theft scheme that bilked the IRS out of hundreds of thousands of dollars in tax refunds.

Cassidy McDaniel, 23, pleaded guilty in federal court in St. Paul to working with conspirators to obtain the names, Social Security numbers, and other information of unsuspecting people and then creating false 2010 federal income tax returns that included claims for refunds.

As part of the scheme, McDaniel and others had the refunds sent to bogus tax-preparation businesses in Minnesota and elsewhere, setting up bank accounts in the names of those fictitious businesses. McDaniel's fake business was called C and M Tax Preparation.

C and M received about $387,000 in ill-gotten tax refunds over about 13 months.

McDaniel now faces the possibility of 10 years in prison, as well as fines and forfeitures. Sentencing has yet to be scheduled.

Among McDaniel's co-conspirators is Nunziata Williams, 32, of Eagan, who was charged last week with recruiting people, including McDaniel, to take part in the plot.

PAUL WALSH