NATION : Report Says IRS Investigating Reagans Over Nancy’s Gowns

Federal tax officials are investigating whether former President Ronald Reagan and his wife owe back taxes from their White House days, particularly on expensive gowns borrowed by the First Lady, it was reported today.

Although neither the Internal Revenue Service nor the Reagans’ lawyer would comment on the inquiry, the Washington Post said it examined documents indicating the tax agency has spent considerable time reviewing the couple’s income tax records.

Nancy Reagan’s practice of borrowing pricey dresses and jewelry from famous designers without reporting the loans as income was part of the investigation, the newspaper said, quoting unnamed sources.

It also said a former fashion company executive, who has become a free-lance journalist, has been sharing information with the IRS while working on a book critical of the Reagans.

Reagan spokesman Mark Weinberg said in Los Angeles that the Reagans were out of town today and he was unaware whether they had read the newspaper report.