According to the Wall Street Journal, in the upcoming round of audits, special attention may be paid to capital gains taxes. IRS officials believe that many investors inflate the price they originally paid for stocks and securities to report lower capital gains and command a lower tax payment. Pres. Bush and members of Congress have even proposed legislation that would require financial services companies to report what investors pay for stocks and securities.

The latest round of random audits poses special concerns. Mark Mazur, the IRS's director of research, analysis and statistics, said that some taxpayers picked for random audits won't even realize it. The IRS will be able to verify everything it needs through a computerized comparison of the information reported on tax forms and separate reports filed by financial institutions, employers and others. Mazur added that "a majority" of tax returns selected will lead to in-person meetings with IRS examiners who will ask more-detailed questions than in regular audits.