The owner of a East Lake Street liquor store has admitted failing to report nearly $500,000 in income for one year.
Hi-Lake Liquors owner Luke Jacob, 56, of Eagan, pleaded guilty Wednesday in federal court in Minneapolis to tax evasion.
In his plea agreement, Jacob admitted that he filed a false tax return for the tax year 2008 and failed to report more than $486,000 in taxable income.
This understatement of income occurred when Jacob overstated the cost of his merchandise and resulted in a tax loss to the federal government of $75,488.
Jacob faces up to five years in prison. His sentencing has yet to be scheduled.
When he was charged in March, Jacob attributed his trouble to "clerical errors."
PAUL WALSH
