Q: I haven't heard much about President Nixon's tax problems of late. Is he still battling the IRS? A: Funny you should ask, because a new controversy has just arisen. Mr. Nixon recently tried to claim the former shah of Iran as a dependent so he could take all those medical deductions. Q: Mr. Taxes, I am trying to track something down for my return. I heard the IRS considers acupuncture treatments a valid medical deduction. Is this true? A: Yes. The IRS feels a certain kinship with the acupuncturist, since both like to stick it to you. Q: I just paid $8,532 for a new Chrysler. In addition to the interest expenses and the sales tax, is there anything else I can write off for tax purposes? A: Certainly. Since it's a Chrysler, you can deduct the whole amount as a charitable contribution. Q: My dear mother, God rest her precious soul, died last June. Now the IRS tells me that I cannot recover any of the funeral costs I incurred. Any suggestions how I might deduct the costs of burying Mom? A: Yes. Since she is residing in a different place, you write it all off as a moving expense. Q: My bones tell me that my tax return is going to be audited this year. What are the red flags the IRS looks for in picking out those returns to be examined? A: There are a few things which raise their eyebrows. For example, it might cause some suspicion if you put your occupation down as lobbyist and then listed half the Congress as dependents. Q: As part of his new anti-inflation package, I understand President Carter is preparing to introduce a new tax on political candidates. What do you know about this? A: Oh, you must be talking about the windbag profits tax. Q: The Irs just informed me that my tax return was being audited. The letter also requested I bring "appropriate records" when I go to their offices. What records would be considered "appropriate"? A: Well, I think Gershwin would be nice, maybe a little Cole Porter.