The “taxman’s art police” has been in existencesince 1968. It is made up of the worlds most experienced and prestigious artexperts. This team meets twice a year to debate and determine the values of theartwork for tax purposes. Officially, the experts are volunteering to be apartof the Art Advisory Panel of the Commissioner of Internal Revenue. Thepanelists are not financially compensated, but are reimbursed for costsincurred, such as travel. Anyone with artwork worth more than $50,000 dollars willlikely be double checked by the panel. Their goal is to ensure that the taxdeductions on different art masterpieces are correct. Typically, the IRS adoptsthe judgment made by the panel. There is a reconsideration process, but usuallythere is only a slight change. The panel considers the appraisal withoutknowing 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.
