Sotheby’s Settles Tax Fraud Lawsuit for $6.25 Million in New York Art Sales Scandal

• Sotheby’s settled a tax fraud lawsuit for $6.25 million with New York State
• Lawsuit accused auction house of helping collectors avoid paying taxes on art purchases
• Sotheby’s accepted fraudulent resale certificates from buyers to avoid sales taxes
• Paintings by high-selling artists like Basquiat and Warhol were involved in the scheme
• Sotheby’s must create guidelines for employees on New York tax law under settlement terms
• Lawsuit filed in November 2020 during art market boom, Sotheby’s recorded $7.3 billion in sales the following year

Source: nytimes.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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