Tate Gallery Art Donation Sparks Suit Against IRS Over Deduction

The daughter of a prominent modern artist says the IRS won’t allow her to deduct the value of her father’s sculpture from her taxes and she’s petitioning the agency in US Tax Court to reverse its stance.

Candida Smith, a New York art collector and philanthropist, is the daughter of sculptor David Smith, whose work is displayed at the Museum of Modern Art and the Guggenheim Museum in New York and the Tate Modern in London. She was hit with a more than $360,000 bill for back taxes and penalties from ...