Monday, October 7, 2013
The "taxman's art police" has been in existence since 1968. It is made up of the worlds most experienced and prestigious art experts. This team meets twice a year to debate and determine the values of the artwork for tax purposes. Officially, the experts are volunteering to be apart of the Art Advisory Panel of the Commissioner of Internal Revenue. The panelists are not financially compensated, but are reimbursed for costs incurred, such as travel. Anyone with artwork worth more than $50,000 dollars will likely be double checked by the panel. Their goal is to ensure that the tax deductions on different art masterpieces are correct. Typically, the IRS adopts the judgment made by the panel. There is a reconsideration process, but usually there is only a slight change. The panel considers the appraisal without knowing if the art is being donated or included in an estate.
See Laura Saunders, The Art (Tax) Police, Wall Street Journal, Sep. 20, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.