Heightened Scrutiny of Art TransactionsHeightened Scrutiny of Art Transactions

The rising value of art and the increasing mobility of wealth haven’t gone unnoticed by New York State’s regulatory authorities. In 2016, tax settlements with several key art industry figures for alleged New York sales and use tax noncompliance surprised many in the art world.   

Those buying, selling or lending art in a transaction involving a New York connection should be aware that such activities may fall under the jurisdiction of not only the New York Department of Taxation and Finance (the Department) but also the New York Attorney General (AG), who’s recently been enforcing the state’s tax laws under the New York State False Claims Act (FCA). The FCA is a civil anti-fraud statute that allows the AG to investigate and prosecute frau...