Stewart was accused of inflating income and using fictitious income to quality clients to receive or maximize the earned income tax credit; claimed false tax credits that are refundable or decrease the amount of tax on her customers' returns, including phony education credits (American Opportunity Credit) and residential energy credits. She was also improperly claimed head of household status to decrease clients' tax liabilities.

The Justice Department also said she included such items on customers' returns without their knowledge.