The allegations say Cotton's actions cost the government about $900,000 in lost taxes. It claims a review of 1,034 returns prepared for tax years 2012 through 2012 found misstatements on 671 returns, 64.9 percent of total.

The complaint alleges the returns prepared by Cotton and her business fabricated deductions and claimed bogus credits, in particular credits for non-existent education expenses. The DOJ alleged the IRS found at least 31 instances of credits claimed for customers who attended Palm Beach State College, even though the school has no record of their attendance.

It was also alleged incorrect filing statuses were frequently used for customers and that returns often claimed other false credits and filed bloated figures for the use of clients' personal vehicles for work.