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IRS deal means museum home for ‘Canyon,’ no tax bill for former owners

November 28, 2012

The modern art showpiece "Canyon" has a new permanent home at New York City's Museum of Modern Art thanks to a $41 million settlement with the Internal Revenue Service.

NYC_MoMA_Entrance_Wikimedia Commons Entrance of Museum of Modern Art via Wikimedia Commons

The work by Robert Rauschenberg is a combine, a mixed-media collage featuring photographs, cardboard, wood, fabric and a stuffed bald eagle on canvas. The ornithological symbol of the United States is why Uncle Sam got involved.

The 1940
Bald and Golden Eagle Protection Act and the 1918 Migratory Bird Treaty
Act make it a crime to possess, sell, purchase, barter, transport,
import or export any bald eagle, whether alive or dead.

The artwork's original owner, Ileana Sonnabend, got an
informal OK from the feds to keep "Canyon." But Sonnabend's heirs said those same laws prohibiting resale of the piece made it worthless for tax purposes.

The IRS disagreed. An appraisal for the tax agency valued "Canyon" at $65 million. That led to an IRS demand of $29.2 million in taxes from the Sonnabend estate.

But that amount, along with almost $12 million in tax penalties, was waived by the IRS in exchange for the family donating "Canyon" to a museum
— MoMA beat out its NYC rival Metropolitan Museum Art — where it would be publicly exhibited. The Sonnabend heirs also had to agree not to claim a tax deduction for the donation.

I'm a birder and the hubby and I enjoy wandering through museums, but I am not a fan of modern art in general or, based on photographs, of "Canyon" in particular. But I do think the Sonnabend heirs were getting a raw tax deal on the value of the work.

I'm glad the IRS relented and that modern art lovers will get a chance to see the Rauschenberg work.

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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