If they do true undercover work, there are no external signs. Regular cops, however, typically have strict dress codes that include certain types of hair cuts. If you're thinking that this could be a cop that just wears his civvies home, look at the hair. Regular cops have to stay clean-shaven too.
For a mystery neighbor, try to talk to them a little. Most (but not all) cops are gun people. Tell him you miss shooting from when you used to do it with your dad and ask if he knows a good range in town. Cops know where the gun ranges are. It doesn't prove anything, but it gives you an indication.
If you think you are being set up for a bust by someone you know, change locations a lot when you're with them. Do it unexpectedly and cross lots of county lines. Informants and cops are very uncomfortable with this because it screws up their support units. Also, never go to a pre-arranged meeting. When making plans, be fuzzy with the final location. This drives cops nuts since they need to set things up beforehand.
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