The IRS is warning taxpayers about an art donation scheme. Fraudsters are encouraging high-income taxpayers to purchase artwork at “discounted” prices and then wait a year before donating the pieces at inflated fair market values, which are typically significantly higher than the purchase prices. These are the amounts that taxpayers will use for deductible charitable contributions on their tax returns. The IRS issued a few red flags regarding this scam. They include taxpayers being urged to purchase multiple works of art from the same artist that have little or no market value and promotors encouraging the use of specific appraisers. For more information: https://bit.ly/3LPZR00
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