Federal authorities are trying to put a Chicago tax preparer out of business for allegedly claiming false deductions on clients' returns, then taking out refund loans without their knowledge.

The U.S. Justice Department announced Wednesday that it has filed a suit seeking a permanent injunction to bar Debra D. Windham of 9717 S. Green St. from preparing federal income tax returns for customers. It is unclear whether federal criminal charges will be pursued.

A complaint filed in U.S. District Court in Chicago alleges that Windham, doing business as Special Circumstances, prepared federal income tax returns for customers claiming false deductions, including training expenses, charitable contributions and medical expenses.

Windham then allegedly applied without customers’ knowledge for “refund anticipation loans” in their names, pocketing the cash from the excess deduction, the complaint alleges.

The complaint also alleges that Windham,  a former secretary with the IRS Criminal Investigation Division, took a portion of the loan proceeds without customers’ knowledge or permission, according to a release from the Dept. of Justice.

In some cases, Windham allegedly prepared two sets of returns -- one for the customer and another (claiming additional bogus deductions) that she filed with the IRS, the release said. Unbeknownst to customers, Windham pocketed the additional refund amount claimed on the filed return. 

After examining returns, the IRS estimates a tax loss of about $850,000 for just 53 returns Windham prepared for tax years 2004 through 2006, according to the release.

Spokesmen for the Department of Justice and the U.S. Attorney's office in Chicago said they could not comment on whether criminal charges are being pursued against Windham.