An Oberlin woman pleaded guilty Tuesday to a federal conspiracy charge involving the preparation of fraudulent tax returns.

A federal grand jury indicted Angela M. Gallow, 47, and Gallow’s sister-in-law, Cella “Ceanne” J. Gallow, of Mamou, in March 2010 on charges of conspiracy and assisting in the preparation of fraudulent tax returns in March 2010.

Angela Gallow was the owner, operator and primary tax preparer at Angela’s Tax Service in Oberlin, Angela Gallow said in an admission of guilt presented to the court by federal prosecutors.

As a tax preparer for the business, Cella Gallow prepared returns in her Mamou home, according to the document.

Angela Gallow said she did not re-examine or ask questions about any returns Cella Gallow prepared, according to the document, and was aware many of those returns contained false and fictitious information concerning the gross income of tax payers.

Cella Gallow, on at least one occasion, told Angela Gallow they could add income from household employment to a client’s tax return without getting into trouble with the IRS as long as they did not exceed a certain dollar amount, the document said.

The two defendants entered into an implied agreement to add a certain amount of fictitious income from household earnings to tax returns that they prepared for some of their clients, the document said.

The 36 returns represented $91,845 in fraudulent claims, but the actual loss did not exceed $5,631 because the IRS detected the scheme early on, the document said.

After investigating the issue and correcting the returns, the IRS ultimately paid out the $5,631 in fraudulent claims, the document said.

Assistant U.S. Attorney Joseph T. Mickel said in court Tuesday that the net loss to the government stands at zero.

Angela Gallow faces a maximum sentence of not more than 5 years in prison and a fine of not more than $250,000.

She will be sentenced at a later date.

The status of Cella “Ceanne” J. Gallow’s case could not be determined Tuesday.