The Fall 2011 issue of The Journal of Art Crime features an academic article by returning contributor John Daab.
ABSTRACT: In appraising fine and decorative art, there are standards available in carrying out the process. The Uniform Standards for Professional Appraisal Practice were developed to protect the appraiser, client, and the public against bad appraisals. Over the last 5 years appraisals filed with the Internal Revenue Service have a hit rate of about 30-40%. That is, the 23 IRS Art Panel reviewers made up of experts in the field of art have found over the last 5 years the 500 or so appraisals filed for donations, estates, or capital gains/losses failed to satisfy USPAP or legal standards required for an IRS qualified appraisal in at least 6 to 7 out of every 10 cases. The significant point is that those bad appraisals, not reviewed, are costing the public millions of dollars in tax dollars. Further, appraisal violations not only cost the appraiser in terms of penalties, but the client has to pay unnecessary interest costs and penalties as well. This article looks at the history of the appraisal process, its structures, the expectations of an appraisal in violation of the standards, the liabilities associated with an appraisal in violation of the standards and laws, and those factors lending themselves in the promotion of fraudulent appraising. From the analysis the article offers suggestions to hold back the spate of poorly developed appraisals.
John Daab is a Certified Fraud Examiner specializing in art and forgery research through the Association of Certified Fraud Examiners. A Certified Forensics Consultant and Accredited Forensic Counselor, he is also a Registered Investigator with the American College of Forensic Examiners International. His academic credentials include a BA,/MA Philosophy, MBA Business, MPS/Industrial Counseling, MA Labor Studies and a PhD in Business Administration. John has also completed New York University’s Fine and Decorative Art Appraisal Program and is completing a docent program at Princeton University. He is a member of the National Sculpture Society, the Association of Certified Fraud Examiners, the American College of Forensic Examiners Institute, Association for Research in Crimes Against Art, and The Fine Art Registry. In addition to his awards for teaching management and service to NYU, John has published more than 70 articles and authored, The Art Fraud Protection Handbook. Having recently completed a second book, Forensic Applications in Detecting Fine, Decorative, and Collectible Art Fakes and is now working on his third book on the Business of Art.
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