IRS Art Advisory Panel 2008 Annual Report Realeased

The IRS has released the Art Advisory Panel of the Commissioner of Internal Revenue Annual Summary Report for 2008. It is always interesting to read and look at the numbers and types of cases reviewed.

The following is a quick review/summary from the report. To read the full report, click HERE.

Art Advisory Panel Summary

The Panel reviewed 973 items with an aggregate taxpayer valuation of $229,972,637 on 179 taxpayer cases under consideration. The claimed value of the average charitable contribution item was $629,064 and the average estate and gift item was $142,629. The Panel recommended total adjustments of $63,548,397 on the reviews now concluded for these meetings. On the adjusted items, the Panel recommended adjustments amounting to a 51 percent reduction on the overvalued items in charitable contribution claims and a 91 percent increase on the undervalued
items in estate and gift appraisals.

The Panel recommended acceptance of 42 percent of the appraisals reviewed. Adjustments were recommended on 56 percent of the reviewed appraisals. Two percent of the appraisals reviewed by the Panel required additional staff development before a value decision could be made. Included were three requests for a Statement of Value under Revenue Procedure 96-15.

The Panel reconsidered 39 items in 14 taxpayer cases originally valued at
$33,502,000 by the taxpayers and $49,070,668 by the Panel. After reviewing the additional information and the revised taxpayer value of $33,954,500, the Panel recommended $48,340,000 on these items. The value of these items are not included in the above listed totals.

Art Appraisal Services Appraisers Summary

Twenty of the Panel cases had additional lower valued items (typically items with claimed values below $20,000) or items outside of the Panel’s areas of expertise with a claimed value of $4,029,916 which were reviewed by Art Appraisal Services appraisers. Adjustments of $694,258 were recommended on these items. In addition, 36 taxpayer cases, some with technical tax related issues, were reviewed by Art Appraisal Services appraisers. These cases consisted of 26 estate cases with claimed values of $5,796,626 and 10 charitable contribution cases with claimed values of $17,318,200. The cases involved the valuation of various objects, such as art of Africa and the Americas, Far Eastern and Asian art, prints, photographs, antique automobiles,furniture, silver, ceramics, carpets, antiquities, and historical properties. Seventeencases were accepted. Adjustments of $4,517,490 were recommended on the remaining cases.