Abstract Artist’s Estate Claims IRS Overvalued Her Creations

The artwork of Carmen Herrera, an abstract artist who died in 2022 at the age of 106, was incorrectly overvalued by the IRS and, as a result, her estate was assessed a nearly $3.6 million tax bill, according to a petition in US Tax Court.

The agency valued the artwork she passed down at more than $37 million when it should be valued at closer to $28 million, according to Herrera’s estate’s petition, filed June 3. The IRS also put too low a limit on the amount of administrative expenses the estate could deduct, according to the filing.

The ...