The IRS warns taxpayers to watch for promotions involving exaggerated art donation deductions that can target high-income filers, and offers special tips to avoid getting caught them.
As part of a larger effort to increase compliance work on high-income individuals and corporations, and protect taxpayers from scams, the IRS has active promoter investigations and taxpayer audits underway in this area.
Find details about these schemes, including:
- How the scheme works
- How to properly claim the deduction, including IRS art appraisal services
- What red flags to watch for
- What the IRS is doing about it