Contents

OTHER ASPECTS OF DEDUCTIBLE GIVINGA request for such a statement of value, for income tax purposes, must bemade prior to filing of the income tax return that first reports the charitable contribution.This request must include a copy of the appraisal of the item of art; acheck or money order payable to the IRS in the amount of $2,500, as a user feefor a request for a statement of value for up to three items of art, plus $250 foreach additional item of art; a completed appraisal summary; 94 and the locationof the IRS district office that has or will have examination jurisdiction over thetax return.A request for a statement of value may be withdrawn at any time prior to itsissuance. When this happens, however, the IRS will retain the user fee and notifythe appropriate IRS district director.The appraisal must meet the requirements for a qualified appraisal 95 and alsoinclude (1) a complete description of the item of art, including the name of the artistor culture, the title or subject matter, the medium (such as oil on canvas), thedate created, the size, any signatures or labels (or marks) on the item of art (or onits back or frame), the history of the item (including any proof of authenticity), arecord of any exhibitions at which the item was displayed, any reference sourceciting the item, and the physical condition of the item; (2) a professional-qualityphotograph of a size and quality fully showing the item, preferably an 8 × 10-inchcolor photograph or a color transparency not smaller than 4 × 5 inches; and (3) thespecific basis for the valuation.The appraisal must be made no earlier than 60 days prior to the date of thecontribution of the item of art. Contributors and their representatives are encouragedto include in the request any additional information that may affect thedetermination of the fair market value of the art.Similar requirements apply when a person is seeking a statement of valuefrom the IRS for an item of art transferred as part of an estate or as an inter vivosnoncharitable gift. In this context, the procedures also state criteria for theappraisal and the appraiser. This is not done in the setting of charitable gifts forincome tax purposes because the criteria are already in the tax regulations.For a completed request for a statement of value received by the IRS afterJuly 15, but on or before January 15, the IRS will ordinarily issue the statementby the following June 30. As to a completed request for the statement receivedafter January 15, but on or before July 15, the IRS will ordinarily issue the statementby the following December 31. It is the responsibility of the personsinvolved to obtain any necessary extensions of time to file tax returns.If the IRS agrees with the value reported on an appraisal, it will issue a statementof value approving it. If the IRS disagrees, it will issue a statement of valuewith its determination of the value, as well as the basis for its disagreement withthe appraisal.Regardless of whether the person involved agrees with it, a copy of thestatement of value must be attached to and filed with the appropriate income,estate, or gift tax return. If a person files a tax return reporting the transfer of anart item for which a statement of value was requested before the statement is94 See § 21.2, text accompanying notes 91–100.95 Id., text accompanying notes 84–90. 366