Contents

• [9.7] 1.1 OVERVIEW

• [9.7] 1.2 DELEGATED AUTHORITY TO SEIZE AND FORFEIT ASSETS
  • [9.7] 1.2.1 Authority Delegated to Chiefs, Criminal Investigation
  • [9.7] 1.2.2 Authority Delegated to Special Agents, Criminal Investigation
  • [9.7] 1.2.3 Authority Delegated to The Assistant Commissioner (International), Director, Taxpayer Service and Compliance (International), and District Directors
  • [9.7] 1.2.4 Authority Delegated To The Assistant Commissioner (Criminal Investigation), and the Director, Office of National Operations (Criminal Investigation)

• [9.7] 1.3 ROLES OF THE PARTIES EFFECTING AN ASSET SEIZURE OR FORFEITURE
  • [9.7] 1.3.1 Role Of The Special Agent
  • [9.7] 1.3.2 Role of The Asset Forfeiture Coordinator
  • [9.7] 1.3.3 Representative Counter Technology Incorporated
  • [9.7] 1.3.4 Role of District Counsel
  • [9.7] 1.3.5 United States Attorney's Responsibility
  • [9.7] 1.3.6 EG&G Representative
  • [9.7] 1.3.7 Representative of The United States Customs Service, Fines, Penalties & Forfeiture Unit
  • [9.7] 1.3.8 Representative of Any Agency that Will be Filing an Asset Sharing Request
  • [9.7] 1.3.9 Role of Chief, Criminal Investigation
  • [9.7] 1.3.10 Role and Requirements of Treasury Executive Office For Asset Forfeiture (TEOAF)
  • [9.7] 1.3.11 District Director, Director, Taxpayer Service, And Compliance (International), Assistant Commissioner (International)
  • [9.7] 1.3.12 Role of The Collection Division, Internal Revenue Service
  • [9.7] 1.3.13 Public Affairs Office
  • Exhibit [9.7] 1-1 Delegation of Authority Memorandum

[9.7] 1.1  (04-30-1998)
OVERVIEW

1. Special agents have the delegated statutory authority to make seizures under certain federal, civil, and criminal statutes. This chapter discusses the authority to seize and forfeit property under the provisions of 18 U.S.C. 981(a)(1)(A) and 18 U.S.C. 982. The authority to effect seizures under 26 U.S.C. 7301 and 7302 are discussed in Chapter 14.
2. Knowing the respective functions of the various parties to a seizure and forfeiture will better prepare the special agent for the forfeiture actions. It is extremely important to involve the various parties in the seizure and forfeiture action early in the process. These parties are directly affected by the execution of the warrant and subsequent responsibility associated with the reporting, custody, litigating, and sharing of the asset.
3. This chapter includes the following sections:
   • Delegated Authority to Seize and Forfeit Assets
   • Roles of the Parties Effecting an Asset Seizure or Forfeiture

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[9.7] 1.2  (04-30-1998)
DELEGATED AUTHORITY TO SEIZE AND FORFEIT ASSETS

1. Delegation Order 158 delegates authority to seize and forfeit property under 18 U.S.C. 981 and 18 U.S.C. 982 to officials within the Internal Revenue Service (IRS). Any authority granted by Delegation Order 158 will officially be conferred to any person designated as acting in that position. Delegation Order 157 delegated authority to seize and forfeit property related to Title 26 violations and is further discussed in Chapter 14.

[9.7] 1.2.1  (04-30-1998)
Authority Delegated to Chiefs, Criminal Investigation

1. Chiefs are authorized to investigate violations of 18 USC 1956 and 1957 where the underlying conduct involves violations of Title 26 or Title 31 (except 31 USC 5316)
2. They can conduct seizures under 18 USC 981 relating to violations of:
   1. 31 USC 5313(a) and 5324(a);
   2. 18 USC 1956 and 1957 where the underlying conduct is subject to investigation under Title 26 or the Bank Secrecy Act.
3. They can seize property relating to any other violation of 18 USC 1956 and 1957 if the bureau with investigatory authority is not present to make the seizure. Property seized under 18 USC 981, where investigative jurisdiction is solely with another bureau, shall be turned over to that bureau.
4. Chiefs have the authority to approve or disapprove administrative forfeiture agreements negotiated by the U.S. Attorney in situations where a Claim and Cost Bond have been filed and the claimant withdraws his claim pursuant to the agreement. In these situations, the U.S. Attorney refers the case back to the Service for an administrative forfeiture of the subject assets. The Chief will make a recommendation to the District Director on the resulting administrative forfeiture. This authority cannot be redelegated.
5. The Chief can sign title and transfer documents to transferees or purchasers of forfeited property, including real property. This also pertains to both administrative and judicial forfeitures which fall under the enforcement authority of the Service. This authority cannot be redelegated.
6. The Chief may delegate some of his authority as follows:
   1. The authority to conduct investigations and seizures may be delegated to special agents by the Chief or Acting Chief (not Branch Chief) by signing the initial Form 4930, CID General/Primary/Subject Investigation Report, prepared to accomplish the opening of the subject investigation, or by memorandum.
   2. The Chief may sign a Form 4930 or issue a memorandum ratifying actions taken by special agents that occurred prior to the initiation of the subject or subject seizure investigation. The Chief will ratify the agents' actions if the agents' actions were reasonable in light of facts and circumstances known at the time, and consistent with existing Service directives contained in Law Enforcement Manual IX. If the Chief determines that forfeiture action is not warranted, the Chief will take appropriate action to transfer custody of the seized subject property to an agency with investigatory jurisdiction, or to the owner, or lienholder under the authority of Treasury Directive 15-42, (2)(c).

[9.7] 1.2.2  (04-30-1998)
Authority Delegated to Special Agents, Criminal Investigation

1. The special agent is to notify any other Treasury bureau of an investigation if, at any time during an investigation authorized by Delegation Order No. 158, evidence is discovered of a matter within the jurisdiction of the other bureau; and to invite the bureau to participate in the
   investigation.
2. The agent can estimate the value of the seized property and if valued at $500,000 or less, prepare a list of seized property, order an appraisal, and attest to the list and appraisal.
3. Delegation Order 158 authorizes the special agent to publish a notice of seizure and cause notice of sale of seized property to be placed in accordance with federal regulations.

[9.7] 1.2.3  (04-30-1998)
Authority Delegated to The Assistant Commissioner (International), Director, Taxpayer Service and Compliance (International), and District Directors

1. Delegation Order No. 158 authorizes the Assistant Commissioner (International) and District Directors and the Director, Taxpayer Service and Compliance in the International function to make determinations under Federal Regulations concerning type and condition of Cost Bonds.
2. They are also authorized to exercise the authority of the Commissioner concerning the disposition of property seized under this order, including authority concerning the disposition of perishable goods.
3. They can execute the declaration of forfeiture showing that personal property has been forfeited to the United States.
4. The authority conferred to the Assistant Commissioner (International) and District Directors, and the Director, Taxpayer Service and Compliance (International ) may not be redelegated.

[9.7] 1.2.4  (04-30-1998)
Authority Delegated To The Assistant Commissioner (Criminal Investigation), and the Director, Office of National Operations (Criminal Investigation)

1. Delegation Order No. 158 authorizes the Assistant Commissioner, Criminal Investigation, CI, and the Director, National Operations Division, CI, to allow or deny petitions for remission or mitigation of forfeiture of property valued at not more than $500,000 seized under 18 USC 981. This authority may not be redelegated.
2. They can accept or reject any offer in compromise of the liability associated with the forfeiture of personal property, and can make the necessary determination and notifications and to authorize the Assistant Commissioner (International) or the District Directors to notify the petitioner or offeror of the action taken on the petition or offer. This authority may not be redelegated.
3. They can also retain for sale, or to equitably transfer, property valued at less than $1,000,000 and forfeited pursuant to 18 USC 981 on such terms and conditions as they may determine to any other federal agency and to any state or local law enforcement agency which participated directly in any acts which led to the seizure or forfeiture of the property, and in a manner which reflects the agency's level of contribution. This authority may be redelegated no lower than the Chief, Office of Narcotics, Currency Crimes and International, CI, except property valued at $100,000 or less, which may be redelegated to the Chief, Asset Seizure/Forfeiture Section, CI.

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[9.7] 1.3  (04-30-1998)
ROLES OF THE PARTIES EFFECTING AN ASSET SEIZURE OR FORFEITURE

1. The following subsections describe the roles of the parties involved in the seizure process.

[9.7] 1.3.1  (04-30-1998)
Role Of The Special Agent

1. The special agent is responsible for the seizure investigation and subsequent forfeiture. He or she will coordinate the seizure and forfeiture activity with input from the Group Manager and Asset Forfeiture
   Coordinator (AFC).
2. Consideration should be given to the handling of certain assets requiring special procedures prior to the execution of the warrant. There are numerous issues involved beyond the legality to execute the seizure. The agent should look beyond the ability to seize and address the practical aspects of what it will cost to seize, handle, and dispose of the asset. In addition, there are innocent owner, victim, and contingent liability issues and recent court decisions which become practical matters of consideration when deciding to seize and forfeit. The agent should be knowledgeable of all aspects of this Handbook.
3. In smaller districts or outlying posts of duties (POD), the seizing agent may also be responsible for ensuring that proper and timely pre-seizure planning occurs. A seizing agent must take the initiative to ensure that pre-seizure meetings are incorporated in the process of any seizure.
4. The agents who take the time and effort to confront these issues by incorporating the representatives mentioned below in the pre-seizure planning, will have fewer surprises. It is extremely important to involve the various parties in the seizure and forfeiture action early in the process.
5. Special agents initiating the seizure and forfeiture activity will ensure the district AFC is informed of all potential actions and is provided with copies of all documentation initiated as a result of the seizure or forfeiture action, including related expenses, for inclusion in the appropriate seizure and forfeiture file.
6. Delegation Order No. 158 specifically authorizes special agents in Title 18 seizures to:
   1. Notify any other Treasury bureau of an investigation if, at any time during an investigation authorized by Delegation Order No. 158, evidence is discovered of a matter within the jurisdiction of the other bureau, and to invite the bureau to participate in the
      investigation.
   2. Prepare a list of seized items and estimate the value of the seized property if valued at $500,000 or less.
   3. Prepare a list and have it appraised, if seized items are valued over $500,000.
   4. Attest to the list.
   5. Publish notice of seizure.
   6. Cause notice of sale of seized property to be placed in accordance with federal regulations.

[9.7] 1.3.2  (04-30-1998)
Role of The Asset Forfeiture Coordinator

1. Each district has an assigned AFC. That person is the local expert in the seizure and forfeiture process. The AFC is to provide the necessary guidance and support to ensure that:
   1. Proper procedures are followed.
   2. Administrative reporting is completed.
   3. Special circumstances are addressed and resolved.
2. The district AFC will contact the Asset Forfeiture Tracking System (AFTRAK) Special Processing Unit (SPU) to obtain all AFTRAK numbers to be used for asset tracking purposes.
3. Initial contact with EG&G, Dynatrend, Inc. through the United States Customs Service (USCS) Fines Penalties & Forfeiture Unit (FP&F) will only be made by the AFC or designee.
4. In administrative cases, the AFC is responsible for ensuring that proper and timely pre-seizure planning occurs. The AFC is the responsible official for contacting and coordinating all actions with the appropriate parties.
5. District AFCs will be responsible for maintaining the seizure file and tracking the asset through the seizure and forfeiture process.
6. The district AFC will reconcile seized assets to the inventory tracking system (AFTRAK) at least quarterly.
7. The AFC will reconcile and certify the seized assets inventory reported by EG&G on a monthly basis. Unresolved discrepancies will be reported to the Headquarters Asset Seizure Forfeiture Section.
8. On a monthly basis, the district AFC (along with the budget analyst) will track and report reimbursable seizure forfeiture expenses to the Assistant Commissioner, CI, Attn: Chief, Asset Seizure/Forfeiture Section, in accordance with Department of the Treasury Executive Office for Asset Forfeiture (TEOAF) guidelines.
9. At least quarterly, the district AFC will reconcile to the fiscal inventory, resolve discrepancies, and report back to the Director of Investigations who, in turn, will report the finding to the Assistant Regional Commissioner (Fiscal Management).
10. The district AFC will conduct a physical year-end inventory, as of September 30, of all seized assets pursuant to Titles 18, 26 and 31, to verify the existence of these assets. This inventory will be forwarded to the fiscal coordinator for the Director of Investigations. This inventory will also be reconciled with AFTRAK, the district inventory, and Fiscal Management records, i.e., the General Ledger.
11. At least quarterly, the district AFC will provide each Group Manager an AFTRAK and a district listing of items seized and held only for evidence for validation and reconciliation.
12. Each district AFC shall reconcile his or her retained Forms 9573 to Form 504 received from EG&G by the 15th of the month following the receipt of the form. The AFC should note the reconciliation date and initial the Form 504. Discrepancies shall be resolved between the district AFC and the USCS SPC/Seized Property Specialist or with EG&G, or will be reported by the AFC to Headquarters, Asset Seizure Forfeiture Section.
13. District AFCs will ensure that all transfers of property to EG&G are timely and accurately reflected on AFTRAK.

[9.7] 1.3.3  (04-30-1998)
Representative Counter Technology Incorporated

1. The duties for which a Counter Technology Incorporated (CTI) representative are authorized are contractually outlined in Section C of the CTI-IRS contract. See Exhibit 1 of the contract for a detailed summary of the activities for which they are authorized.
2. Briefly, the CTI representative may handle:
   1. The ancillary notifications.
   2. The reporting procedures.
   3. Sharing request processing.
   4. The AFTRAK system.
3. The CTI representative is not authorized to obligate the government for any services or expenses.
4. Since the AFC and CTI representative take on such a substantial amount of responsibility, it is imperative they are kept informed of all seizure activities.

[9.7] 1.3.4  (04-30-1998)
Role of District Counsel

1. If the proposed seizure and forfeiture can be initiated administratively, District Counsel should be requested to assist in the preparation of the affidavit in support of the seizure warrant.
2. If the proposed seizure and forfeiture is one which must be initiated judicially, Counsel may assist in the preparation of the affidavit, or may be provided with a copy of the affidavit, and all pertinent documents, if the affidavit is prepared with the assistance or concurrence of an Assistant United States Attorney (AUSA).
3. In either case, Counsel can advise relative to recent court decisions which may bar other enforcement action such as an excessive fines violation of the Eighth Amendment.
4. Special agents are encouraged to consult District Counsel before seeking a seizure warrant, a warrant of arrest in rem, or before taking possession of property without a warrant in non-grand jury Title 18 or Title 31 forfeitures which involve the use of tax return information. District Counsel must be consulted unless an ex parte order exists to disclose return information to the U.S. Attorney. District Counsel's role in the seizure and forfeiture process involving a pure Title 18 or Title 31 matter is advisory in nature if no Title 26 matter or information is to be disclosed to the U.S. Attorney or in the agent's affidavit. Counsel's advise will focus on the observation of all legal requirements, i.e., probable cause, due process, etc. The decision to present the special agent's affidavit to the U.S. Attorney to pursue the seizure in a pure Title 18 or Title 31 matter rests within the delegated authority of the Chief, CI.
5. District Counsel's early involvement, exclusively in an advisory role, is recommended because Counsel may be able to assist in the seizure warrant affidavit preparation, and because Counsel will be involved in the post-seizure actions upon receiving a Seized Property Report, Form 4008 (with attachments from the AFC), as follows:
   1. Issuance of a Law and Fact Memorandum.
   2. Review of the recommendation of the Chief, CI, on the acceptability of any Claim filed and Cost Bond submitted with the Claim.
6. The Law and Fact Memorandum is the means that Counsel uses to provide advice to the District Director on the legal basis, or lack thereof, for forfeiture, and to assist the District Director in deciding whether to declare the property as forfeited.
7. Counsel also reviews the recommendation of the Chief, CI, on the acceptability of any Claim filed and Cost Bond submitted with the Claim. Counsel will advise the District Director (Attn: Chief, CI), via memorandum, as to the legal sufficiency of the proposed 981 forfeiture. Where transmittal to the U.S. Attorney's office is required, Counsel will advise the District Director (Attn: Chief, CI), whether the proposed forfeiture should be abandoned (quick released, turned over to another agency) or forwarded to the U.S. Attorney's Office for initiation of judicial proceedings. The Chief, CI, will transmit the Claim and a copy of the Cost Bond to the U.S. Attorney with the District Director's signature.
8. District Counsel's role in civil judicial forfeiture actions under 18 U.S.C. 981 is limited to pre-seizure assistance with the special agent's affidavit and advice to the District Director (Attn: Chief, CI) as to the advisability of referring a proposed forfeiture to the U.S. Attorney when a seizure exceeds the administrative dollar limits. A Seized Property Report, Form 4008, will not be transmitted to District Counsel for a seizure that is based on the filing of a complaint for forfeiture by a U.S. Attorney since Counsel does not issue a Law and Fact Memorandum in such seizures.
9. District Counsel will be involved in pre-seizure procedures regarding proposed adopted seizures. Prior to taking custody of property from another agency in a proposed adoption, the Chief, CI, will transmit pertinent police reports, affidavits, search warrant, memorandums, and a Request for Adoption of a Local or State Seizure form to District Counsel for review and approval. Seizures of adopted property will be made only with a seizure warrant in accordance with Department of Treasury seizure adoption policy.

[9.7] 1.3.5  (04-30-1998)
United States Attorney's Responsibility

1. The appropriate U.S. Attorney's office will draft indictments of both property and person.
2. In judicial cases, the U.S. Attorney's office representative (AUSA) is responsible for ensuring that proper and timely pre-seizure planning occurs.
3. Title 18 U.S.C. 981 (b)(2) provides that property, involved in a transaction or attempted transaction in violation of section 5313(a) or 5324(a) of Title 31, or of section 1956 or 1957 of Title 18, may be seized and civilly forfeited upon process issued pursuant to the Supplemental Rules for certain admiralty and Maritime Claims. Title 19 U.S.C. 1604 specifically states that it is the responsibility of the Attorney General of the United States (U.S. Attorney) to inquire into the facts presented to him or her by the seizing officers; and, if this inquiry shows that forfeiture is appropriate, it is his or her responsibility to institute procedures in U.S. District Court (obtain warrants of arrest in rem, seizure warrants, or search warrants). The local U.S. Attorney's office must be consulted in order to bring the special agent's affidavit before the U.S. magistrate judge or district court judge.
4. The special agent will not present the affidavit to a magistrate judge without the assistance of the U.S. Attorney's office. Thus, contact and coordination should be made with the Chief, Asset Forfeiture Section, of the U.S. Attorney's office as early as possible to avoid wasted time and effort. The AUSA can assist in assessing the advisability and legality of the proposed seizure and the existence of the requisite probable cause to seize and proceed against the property.
5. In forfeiture proceedings which are judicial from the outset, the AUSA can assist in determining the most appropriate method of action, i.e., civil forfeiture on in rem proceedings under 18 USC 981 or criminal forfeiture on in personam proceedings under 18 USC 982.
6. In administrative forfeiture proceedings, the AUSA assigned to assist in securing a seizure warrant may be assigned litigation responsibility if a Claim and Cost Bond are subsequently filed and the action reverts to a judicial forfeiture.
7. Pursuant to Title 19 USC 1608, if an acceptable Claim and Cost Bond are filed by a claimant within 20 days of the first publication of the Notice of Seizure, the Service will forward the Claim, a copy of the Cost Bond, and a description of the subject property to the U.S. Attorney for the judicial district in which the seizure warrant was issued, so that the attorney may proceed with a judicial forfeiture process.

[9.7] 1.3.6  (04-30-1998)
EG&G Representative

1. EG&G is currently the independent contractor for Treasury cases (Title 18 seizures) and serves as the property manager.
2. EG&G is the Department of Treasury contractor responsible for the handling and storage of assets seized in anticipation of forfeiture. The representative can provide the needed information on the transportation, special handling, storage, management, and disposition of seized items. In addition, the company provides advanced escrow services including title search, valuation, and equity position information which should be considered prior to the seizure determination. The representative will work directly with the United States Customs Service (USCS) representative and the AFC to substantially reduce the burden on the agent for the custody and control of property seized for forfeiture. If the asset to be seized requires interim management services, EG&G will locate and contract with a property or business management firm to assure continued operation of the enterprise.
3. A representative of EG&G has to be actively involved in the planning process. Specific procedures for pre-seizure planning will ensure that critical financial and property management issues are addressed prior to seizure of real property, commercial enterprises, or other types of property which may pose potential problems of maintenance or disposition. Some issues that need to be considered for EG&G input are discussed in Chapter 6, Seizure Planning located in this Handbook. However, note that at times the AUSA may feel that in judicial matters the pre-seizure information is too sensitive and may want the pre-seizure meetings bifurcated to limit the information discussed with the EG&G representative.
4. EG&Gs duties as property manager which are discussed in Chapter 8, Storage of Seized Assets.
5. EG&G also is involved in the disposition of forfeited assets. See Chapter 10, Disposition of Forfeited Assets, for more information.

[9.7] 1.3.7  (04-30-1998)
Representative of The United States Customs Service, Fines, Penalties & Forfeiture Unit

1. The Fines Penalties & Forfeiture (FP&F) representative, a USCS employee, is responsible for direct dealings with EG&G, as the EG&G contract is with USCS. The district AFC is the contact person with the FP&P representative in arranging for the services of EG&G.

[9.7] 1.3.8  (04-30-1998)
Representative of Any Agency that Will be Filing an Asset Sharing Request

1. Early in the seizure forfeiture process, discussions should take place as to the asset sharing agreements. This is especially true in multi-agency task force investigations. There are a number of issues to be addressed including:
   1. Which agency is the seizing agency.
   2. Eligibility requirements.
   3. Use of shared property.
   4. Sharing percentages.
2. This will help prevent any false expectations an agency may have in the sharing process.
3. Each participating agency eligible to share should understand that the primary criteria for sharing is based upon the relative time devoted to the investigation. The request for sharing should report the personnel hours which can be attributed to the seizure investigation. Other factors also taken into consideration would include:
   1. Unique or indispensable assistance.
   2. The agency that identified the asset.
   3. The agency that developed the source of information leading to seizure.
4. See Chapter 12, Equitable Sharing And Reverse Asset Sharing, in this Handbook for more information.

[9.7] 1.3.9  (04-30-1998)
Role of Chief, Criminal Investigation

1. Delegation Order No. 158 specifically authorizes the Assistant Commissioner and Director, National Operations Division, in Title 18 seizures to:
   1. Investigate violations of 18 USC 1956 and 1957 where the underlying conduct is subject to investigation under Title 26 or under the Bank Secrecy Act, as amended, 31 USC 5311-5330 (other than violations of 31 USC 5316).
   2. Seize property for violations of 18 USC 981 relating to violations of 31 USC 5313(a) and 5324(a); and 18 USC 1956 and 1957 which are within the investigatory jurisdiction of the IRS pursuant to a. above.
   3. Seize property relating to any other violation of 18 USC 1956 and 1957 if the bureau with investigatory authority is not present to make the seizure. Property seized under 18 USC 981, where investigatory jurisdiction is solely with another bureau not present at the time of the seizure, shall be turned over to that bureau.
   4. Approve or disapprove administrative forfeiture agreements negotiated by the U.S. Attorney in situations where a Claim and Cost Bond has been filed and the claimant withdraws his or her claim pursuant to the agreement. In these situations, the U.S. Attorney refers the case back to the Service for an administrative forfeiture of the subject asset(s). The Chief will make a recommendation to the District Director on the resulting administrative forfeiture.
   5. Sign title and documents to transferees or purchasers of forfeited property, including real property. This also pertains to judicial forfeitures which fall under the enforcement authority of the Service by virtue of authority granted the Secretary of the Treasury in 31 USC 321(b), codified in part by 31 USC 9703, and conferred to the Commissioner consistent with Department of Treasury Order 102-14 and Treasury Directives 15-42 and 27-03.
   6. Delegate the authority granted in a, b, and c above on a case-by-case basis to special agents. Delegation of Authority to investigate a violation of Title 18 USC 1956 or 1957 or Title 31 USC 5311 through 5330 (other than 5316) will be effected by the signature of the Chief, CI, or in his or her absence, of the acting Chief, on the initial Form 4930, CID General/Primary/Subject Investigation Report, prepared to accomplish the opening of the subject investigation, or by memorandum. Similarly, the delegation of authority to seize assets under Title 18 USC 981 will be effected by the signature of the Chief, CI, or in his or her absence, of the acting Chief, on the initial Form 4930, prepared to accomplish the opening of the subject seizure investigation, or by memorandum. The Chief's authority to grant these delegations of authority to special agents may not be redelegated to the Branch Chief level. A Chief may ratify actions taken by a special agent referred to in a, b, or c above that occurred prior to the initiation of the previously mentioned subject seizure investigation by issuing a memorandum formally delegating authority to the special agent (Exhibit 1-1) or by signing the Form 4930. The agent must disclose all previous actions taken to the Chief. If the Chief determines that forfeiture action is not warranted, the Chief will take appropriate action to transfer custody of the seized subject property to an agency with investigatory jurisdiction, or to the owner, or lienholder under the authority of Treasury Directive 15-42.
2. Any authority granted by Delegation Order 158 will officially be conferred to any person designated as acting in that position.

[9.7] 1.3.10  (04-30-1998)
Role and Requirements of Treasury Executive Office For Asset Forfeiture (TEOAF)

1. TEOAF requires that CI, as a participant in the Treasury Forfeiture Fund, obtain TEOAF approval for certain activities and submit certain reports on the agency program annually, quarterly, or on an as-needed basis. All reports or documents submitted to the TEOAF should be mailed or faxed to: Director--Treasury Executive Office for Asset Forfeiture, Suite 70, 740 15th Street, NW, Washington, DC 20220 (FAX number: 202-622-9610). The required approvals and reports are described in the subsequent paragraphs.
2. The following reports and requests should be forwarded to the Assistant Commissioner, CI, for recommendation and transmittal to the TEOAF:
   1. Report of Official Use Authorizations Involving Non Cash Personal Property Valued over $50,000--Districts must provide written notice to the Director, TEOAF, at the time property valued at $50,000 or greater is placed into official use. This is an aggregated value of assets placed into official use resulting from a single forfeiture case.
   2. Authorization for Payment of Liens on Real Property--Payment of liens or mortgages on real property placed into federal official use or transferred to state or local agencies must be expressly and formally approved by the Director, TEOAF.
   3. Authorization to Transfer Forfeited Property to Other Treasury Agencies Not Participating in Acts Leading to Seizure or Forfeitures--If the seizing investigative agency chooses not to place the property into official use and the property has not been equitably transferred, other Treasury agencies may, by specific written request to the Director, TEOAF, seek the transfer of the forfeited property for their official use.
   4. Report of Transfers of Forfeited Property with an Aggregate Value of Less Than $25,000 to Non-Treasury Federal Agencies Not Participating in Acts Leading to Seizure or Forfeiture--All such transfers shall be reported to the Director, TEOAF, on a quarterly basis by the Assistant Commissioner, CI. The recipient agency shall pay expenses incurred by any Treasury agency in connection with the seizure, forfeiture, and transfer of such property. These expenses can be waived by the Assistant Commissioner, CI.
   5. Authorization to Transfer Forfeited Property with Aggregate Value of $25,000 or More to Non-Treasury Federal Agencies Not Participating in Acts Leading to Seizure or Forfeiture--Permission to grant a request for any property valued at $25,000 or more must be obtained in writing from the Director, TEOAF. The recipient agency shall pay expenses incurred by a Treasury agency in connection with the seizure, forfeiture, and transfer of such property. These expenses may be waived by the Director, TEOAF.
   6. Requests for Property by Foreign Countries--Requests by a foreign country for forfeited property shall be forwarded with a recommendation from the Assistant Commissioner, CI, to the Director, TEOAF.
   7. Requests for Training Needs.
3. The following documents may be transmitted directly to TEOAF at the address provided in (1) above:
   1. Reports of Reverse Sharing Requests--Within 10 days of filing a reverse sharing request, a copy of the sharing request must be sent to TEOAF, Attn: Equitable Sharing Coordinator.
   2. Cash or Net Proceeds Received from Reverse Asset Sharing-- Cash or net proceeds received from reverse asset sharing shall be forwarded to TEOAF, Attn: Equitable Sharing Coordinator, for deposit into the Fund.
   3. Reporting Disposition of Assets--The Disposition Form for Assets Other Than Currency, TEOAF Form 1 and Disposition Form for Seized Currency, TEOAF Form 2 must be faxed to the TEOAF office for final disposition of assets.
   4. Notice of Pending Expedited Settlement Agreement--The Notice of Pending Expedited Settlement Agreement Form must be expeditiously faxed to the TEOAF to allow for planning of fiscal commitments. FAX number 202-622-9610.
   5. Expedited Settlement Agreement--The Expedited Settlement Agreement Form accompanied by copies of the Order of Forfeiture, Settlement Periodic Agreement, Lien/Mortgage Documents, and Payoff Statement(s), shall be faxed to TEOAF upon completion.

[9.7] 1.3.11  (04-30-1998)
District Director, Director, Taxpayer Service, And Compliance (International), Assistant Commissioner (International)

1. The District Director whose district conducted the seizure investigation and caused the property to be seized is the forfeiting authority in administrative forfeitures. The District Director will normally be briefed at executive staff meetings by the Chief, CI, of any contemplated seizure action.
2. The Director, Taxpayer Service and Compliance (International) will be the authority on forfeitures outside the United States.
3. Delegation Order No. 158 authorizes the Assistant Commissioner (International) and District Directors, and the Director, Taxpayer Service and Compliance in the International function to:
   1. Make determinations under Federal Regulations concerning type and condition of Cost Bonds.
   2. Exercise the authority of the Commissioner concerning the disposition of property seized under this order, including authority concerning the disposition of perishable goods.
   3. Execute the declaration of forfeiture showing that personal property has been forfeited to the United States.
4. The authority delegated in (a), (b) and (c) above may not be redelegated.

[9.7] 1.3.12  (04-30-1998)
Role of The Collection Division, Internal Revenue Service

1. If property is seized, but cannot be forfeited for some reason, it could be used to satisfy an outstanding tax liability.
2. The Collection Division should not file liens against the property after seizure without CI's knowledge and concurrence.
3. Liens filed prior to seizure are timely released if called for under the Relation Back Doctrine. This doctrine maintains that when a statute provides for forfeiture of property, the forfeiture takes place at the moment of the property's illegal use or acquisition, unless the statute provides otherwise. At that instant, all rights and legal title to the property pass to the government. Seizure and formal proceedings simply confirm, or proclaim, the forfeiture that has already taken place. No third party can acquire a legally recognizable interest in the property after the illegal use, subject to the Supreme Court's decision in United States v. 92 Buena Vista Ave., Rumson, N.J. 113 U.S. 1126 (1993), which allows third party claims to property to be shown, and to prevail, if the interest was acquired before the process to perfect forfeiture was completed. In all instances, District Counsel shall be consulted prior to release of a tax lien or prior to release of the seized property to satisfy the tax lien.

[9.7] 1.3.13  (04-30-1998)
Public Affairs Office

1. Consideration should be given to contacting the district Public Affairs Office of the district where the seizure or forfeiture occurs in conjunction with all planned seizures. This will allow the Public Affairs Officer to coordinate appropriate publicity as well as be able to respond to media inquiry in accordance with established guidelines.