The IRS Art Advisory Summary Report for 2012

The IRS recently released its annual report for the Art Advisory Panel findings and recommendations for 2012.  The panel reviewed 444 items (up from 344 in 2011) from 42 taxpayers (down from 52 in 2011).

The average claimed value for charitable contributions was $613,684 ($1,008,500 for 2011) and $626,890 ($409,070 for 2011) for estate and gift appraisals.  The Panel recommend accepting 51% (43% for 2011) of the reviewed claims, and adjusting 49% (56% in 2011).

From the 2012 IRSArt Advisory Panel report

Summary of Panel Recommendations

During FY12, the Panel completed its review of 444 items with an aggregate taxpayer valuation of $281,859,200 on 43 taxpayer cases under audit. The average claimed value of a charitable contribution item was $613,684; the average claimed value for an estate and gift item was $626,890.

The Panel recommended accepting 51% and adjustments to 49% of the appraisals it reviewed. Two percent of the appraisals reviewed require additional staff development before the Panel can make a value recommendation. The Panel recommended total net adjustments of $66,066,800. On the adjusted items, the Panel recommended a net 52% reduction on the charitable contribution appraisals and a net 47% increase on items in estate and gift appraisals.

The Panel reconsidered 26 items in 3 taxpayer cases originally valued at $58 million by the taxpayers and $82,150,000 by the Panel. After reviewing the additional information, the Panel revised their recommendations to $82,650,000. The Panel also provided valuation expertise regarding 42 works of art in two income tax cases unrelated to charitable contributions. The items from these five taxpayer cases are not included in the information above or that follows.

Source: IRS