we mentioned the IRS....So for an IRS agent when considering good indicators of fraud, there are some important clues, such as:

When talking about the taxpayer who is self employed, IRS agents may use indirect methods to find unreported income,

The lifestyle of most people may definitely give clues as to fraud possibilities, and

The IRS does not have unlimited discretion to use an indirect method.

So, can anyone tell explain the indirect method using any examples?