If you or a client has used a Section 1031 tax-deferred exchange recently, hold on to your documentation, as the Internal Revenue Service is stepping up reviews of such transactions, according a Wall Street Journal report.  Urged by a recent Treasury report to do a better job of explaining 1031 rules, the IRS also is revising its reporting forms, publications, and other communications and will conduct an in-depth study of reporting and compliance issues regarding like-kind exchanges in the past decade.   In 2004, taxpayers filed more than 338,500 forms for like-kind exchanges, more than double the number in 1998, representing almost $74 billion in deferred taxes.

 From CCIM magazine, Jan-Feb 08