The IRS’ latest move in its crackdown on wealthy tax cheats targets inflated art valuations that generate outsized deductions. Improper art write-offs have now been added to the agency’s annually updated “dirty dozen” list of common scams, highlighting a rise in such deductions as a form of tax avoidance.

In an interview with Bloomberg Law, Michael Kosnitzky, co-leader of Pillsbury’s Private Client & Family Office practice, noted that the IRS has tightened its valuation standards more broadly over the past year.

“Valuations are being challenged as to whether or not the reports themselves are valid,” he added.

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