Thanks for the info Bob. I do believe the IRS has items that flag a return (what ever color the flag is) In past years I worked with an ex IRS agent, and he had said one flag was consistence losses. Not sure how the IRS collected the info now or then, but it seems reasonable that a consistent  loss would raise questions. Maybe just pulled at random, and looked at. That is why I replied to original poster to take loss if client was truly in business