PHILADELPHIA (CBS) – Philadelphia rap artist Beanie Sigel has changed his plea to “guilty” on federal tax fraud charges.

Now, the 37-year-old entertainer born Dwight Grant is owning up to his obligations, according to his defense lawyer, Fortunato Perri Jr.

“Mr. Grant accepted his responsibility for his actions in failing to file his federal income tax returns,” Perri told reporters today.

The government says Sigel made more than $1.4 million from 2002 through 2004 but filed no tax returns for those three years.  Assistant US attorney Paul Gray says IRS calculations show the tax loss at $348,000.

But Perri says it’s well below that when expenses are factored in.

“We intend to raise some issues with the court that will probably change the overall tax loss numbers,” Perri said.

Prosecutor Gray says the six-year statute of limitations expired on earlier tax returns, so although the federal government alleges the overall tax loss approaches $750,000, Grant can’t be charged for those prior years.

When sentenced in November, Grant faces a maximum three-year prison term and a $300,000 fine.

Reported by Steve Tawa, KYW Newsradio 1060