Estate Probate and the Internal Revenue Service’s Art Advisory Panel

How the Art Advisory Panel Protects Taxpayers’ Privacy

To ensure impartiality and protect taxpayers’ privacy, the panelists only receive relevant information about the artwork and its history. They cannot view the owner’s name, the type of tax applicable to the item, or the potential tax consequences of their decision. If a Panel member has a conflict of interest, they are excluded from making an appraisal. In one recent year, the Panel’s members reviewed over 500 individual pieces of art, recommending tax adjustments totaling some $100 million.

The Importance of Getting a Good Appraisal

Estate items are usually only referred to the Art Advisory Panel if the IRS believes an artwork’s claimed appraisal could be inaccurate. While the Panel often finds in favor of taxpayers, an adverse decision could result in a larger tax bill and, in some cases, penalties.