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GETTING PERSONAL: Audit Red Flags As IRS Pursues Rich

A DOW JONES NEWSWIRES COLUMN
    By Arden Dale



NEW YORK (Dow Jones)-- A riddle wrapped in a mystery inside an enigma - tax advisers may recall this Winston Churchill remark when trying to predict a client audit.

No one can say for sure which tax return will run afoul of the Internal Revenue Service. With so much new tax legislation and an IRS push to be more aggressive with wealthy taxpayers, though, it's critical to know the common red flags.

For starters, the IRS strongly disputes a report this week from the Transactional Records Access Clearinghouse that says audits of the wealthy have fallen off.


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