ADAA Hires former IRS Art Advisory Panel Director

Carol Vogel reported in the Friday edition of the NY Times that past IRS Art Advisory Panel Director was appointed to the position of Director of the Appraisal Services department of the Art Dealers Association of America.

Vogel reports

In an effort to beef up its appraisal business — and grab some of it away from the auction houses — the Art Dealers Association of America has hired Karen E. Carolan, the former director of the Internal Revenue Service’s art appraisal division and former chairwoman of its Art Advisory Panel. She was appointed executive director of the association’s appraisals services department. “This is a long-term initiative,” said Lucy Mitchell-Innes, president of the dealers group.

While the association already has a team of appraisers, it is hoping to increase the business that comes primarily from estates and collectors making donations to nonprofit institutions. Performing appraisals not only brings in revenue, it is also a good way to learn where works of art are, which can often lead to future sales. That’s partly why the auction houses are so keen to help clients with appraisals for everything from estate taxes to insurance and gift taxes.

While Sotheby’s and Christie’s usually charge fees for appraisals, it is often waived for collectors whose works they hope to sell in the future. Art dealers, like those in the association, charge a fee too, another revenue stream the group hopes to increase.