Valuations on artwork are frequently too low or too high. An IRS review from 2011 to 2015, found that 58 percent of the works of art reviewed had been valued incorrectly.
Taxpayers were prone to underestimate the value when art was gifted or left in a bequest. On the other hand, when artwork is donated the value was often overestimated for charitable contribution write offs. When the Service raises questions it can lead to a protracted court battle.