Yes, But Is It Art?

Want to experience the absolute peak of pretentiousness?

Somehow wangle an invitation to an art gallery showing and just sit back and watch. Folks who couldn’t discern a Picasso from a Pickleman will gladly proffer their abstractionist views on what the respective artists were trying to convey. I had a friend who, following one black-tie gallery showing, told me no less than 10 guests spent a half-hour scrutinizing a block draped with canvas before someone realized it was a building column under construction.

But I digress.

Apparently, the art appraisal experts at the IRS (who knew there was even a division for that?) are in need of some CPE, at least according to a new report from the GAO. Seems those employed in that unit of the Service are not subject to either a comprehensive quality review program or continuing education requirements specifically devoted to appraising art or other property.

It would seem this void in CPE has the potential to make art appraisers somewhat less effective than they could otherwise be. As with any trickle-down effect, the better the appraiser, the burden on U.S, taxpayers could be reduced.

The GAO stated that the tax liabilities of those who make noncash charitable donations or who receive inheritances in the form of gifts or property depend on the valuation of said instant largesse.

Back in 2005, the IRS and the Joint Committee on Taxation had identified as a recurring issue that of overvalued donations of conservation easements. Fast forward six years later when, at the Justice Department’s behest, a  district court issued an injunction against a company that the IRS identified as improperly encouraging taxpayers to seek appraisers who would deliberately  mis-value conservation easement contributions on building façades.

Not surprisingly, the GAO recommended that the IRS develop a comprehensive quality review program for Art Appraisal Services and establish appraisal training requirements specifically for AAS staff.

That’s probably sage advice, just as long as they don’t begin over-valuing areas under construction.

There are already enough folks who are capable of that.