Contents

• [9.7] 13.1 OVERVIEW

• [9.7] 13.2 SEIZURE FOR EVIDENCE

• [9.7] 13.3 AUTHORITY TO OBTAIN AND SEIZE EVIDENCE

• [9.7] 13.4 METHODS TO ACQUIRE EVIDENCE

• [9.7] 13.5 PROCESSING EVIDENCE

• [9.7] 13.6 CURRENCY AS EVIDENCE
  • [9.7] 13.6.1 Currency Stored In Safe Deposit Boxes

• [9.7] 13.7 TRACKING AND REPORTING SEIZED EVIDENCE

• [9.7] 13.8 CONVERTING ASSETS SEIZED FOR EVIDENCE TO ASSETS FOR FORFEITURE
  • Exhibit [9.7] 13-1 Request to Remove Asset Seized For Forfeiture From the General Ledger

[9.7] 13.1  (04-30-1998)
OVERVIEW

1. Seizure of assets for evidence is discussed in detail in this Chapter. The sections addressed are as follows:
   • Seizure For Evidence
   • Authority To Obtain And Seize Evidence
   • Methods To Acquire Evidence
   • Processing Evidence
   • Currency As Evidence
   • Tracking And Reporting Seized Evidence
   • Converting Assets Seized For Evidence To Assets For Forfeiture

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[9.7] 13.2  (04-30-1998)
SEIZURE FOR EVIDENCE

1. Special agents make seizures for evidence in the course of an investigation to prove or disprove an alleged violation of the laws they are tasked to enforce.
2. The property obtained for evidence is not forfeited. It is returned to the witness at the conclusion of the investigation or kept in the investigative file, although in some instances forfeiture proceedings may be instituted against evidence. If that is to occur, refer to the Chapters on seizure for forfeiture.

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[9.7] 13.3  (04-30-1998)
AUTHORITY TO OBTAIN AND SEIZE EVIDENCE

1. Gathering information necessary for the enforcement and administration of tax laws is granted to the Commissioner of Internal Revenue through Treasury Directive 150-10. It is further clarified in Policy statement P-1-1.
2. The authority for seizing evidence with a search warrant rests with Rule 41 of the Federal Rules of Criminal Procedure (F.R.Cr.P.).

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[9.7] 13.4  (04-30-1998)
METHODS TO ACQUIRE EVIDENCE

1. Evidence can be obtained with the consent of the owner or occupant of the property, incident to a lawful arrest or search, and by acquiring abandoned property. Evidence can also be obtained through the execution of a search warrant. The procedures for obtaining and executing search warrants and warrantless searches can be found in Handbook 9.4, Chapter 13.

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[9.7] 13.5  (04-30-1998)
PROCESSING EVIDENCE

1. When an asset is seized as evidence, a Primary or Subject Investigation Number must be obtained if one does not already exist. A Subject Seizure Number is not required.
2. A detailed inventory of all property seized as "evidence" pursuant to a search warrant or incident to a lawful arrest without a search warrant must be prepared to preserve the chain of custody and the evidentiary value of the assets.
3. Rule 41 F.R.Cr.P. does not specify the requirements of a detailed inventory of property seized. However, the IRS requires Form 4008, Seized Property Report and Form 181, Property Inventory Record to be prepared by a special agent to report all property seized for whatever reason (i.e., evidence, administrative or judicial forfeiture, or abandonment). The following items should be included for inventory purposes and for completion of the seizure forms.
   1. Date of Seizure.
   2. Location of Seizure.
   3. Seizing Officer.
   4. Description of Property Seized.
4. The description of the property should be detailed to the extent that someone unfamiliar with the seizure could find the seized property after referring to the description. The use of generic terms, manufacturer names, and serial numbers are encouraged to describe seized property.
5. Still pictures or video should be taken of seized property to further aid in identifying and reflecting the condition of the seized property.
6. Effective October 1, 1993, any personal property (non-currency) with a fair market value (FMV) of $500 or greater seized as evidence; any currency; and monetary instruments of any amount (seized as evidence), when converted to currency for deposit into the United States Custom Service Suspense Account, must be tracked on AFTRAK and on the General Ledger. The following steps must be taken:
   1. Obtain an AFTRAK Number.
   2. Prepare a Seized Property Report (Form 4008) and Supplemental Seized Property Report (Form 4008S) for each asset seized.
   3. Send a Notification memorandum (Exhibit 6-25) to the ARC, Fiscal Management Branch, along with the Form 4008 and 181.
   4. Personal property seized as evidence with a FMV of less than $500 will be accounted for on a separate district database maintained by the district Asset Forfeiture Coordinator (AFC). Such items include briefcases, pagers, cellular telephones, and any other personal property seized as evidence. Monetary instruments seized as evidence with no intent to forfeit, which have not been converted to currency, will be accounted for on the district database with an accurate description and a zero value.

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[9.7] 13.6  (04-30-1998)
CURRENCY AS EVIDENCE

1. In cases where the currency (intended for forfeiture) serves a significant independent, tangible, evidentiary purpose due to, for example, the presence of fingerprints, packaging in an incriminating manner or another unique characteristic, the Assistant United States Attorney may request a special agent to hold currency as evidence. If the amount of seized currency to be retained for evidentiary purposes is less than $5,000, a written request from a management official of the United States Attorneys Office requesting that the currency be held as evidence should be submitted and maintained in the Seizure File. Notice to IRS Headquarters Asset Forfeiture and Narcotics Section or TEOAF is not required for seized currency less than $5,000 being retained for evidentiary purposes.
2. If the amount of seized currency to be retained for evidentiary purposes is $5000 or more, approval to hold the currency as evidence must be obtained from the Department of Justice (DOJ), Deputy Attorney General or Chief, Asset Forfeiture and Money Laundering Section. The pproval should be forwarded to the Assistant Commissioner, CI, Attention: Asset Forfeiture and Narcotics Section. The memorandum transmitting the approval should contain:
   1. The amount of currency seized.
   2. The seizure date.
   3. The seizure location.
   4. The subject investigation number.
   5. The Asset Forfeiture Tracking (AFTRAK) number.
   6. The AUSA's name and judicial district.
   7. The reason the money is not being deposited.
3. If only a portion of the seized currency has evidentiary value, only that portion with the evidentiary value should be retained. The balance should be deposited in accordance with the above stated policy. Currency less than $5,000 which is seized solely for evidence or as part of a Title 26 investigation requires a written request from the United States Attorney's Office requesting that the currency be held as evidence or a memorandum signed by the Chief, Criminal Investigation, stating this fact; the request or memorandum should be maintained in the seizure file. Currency seized solely for evidence or as part of a Title 26 investigation which equals or exceeds $5,000 requires the written approval of the Director, National Operations Division.
4. Currency seized solely as evidence is to be placed on the General Ledger by sending a copy of the Form 4008 to the ARC, Fiscal Management Branch, together with a transmittal memorandum. The ARC, Fiscal Management Branch must also be informed by the AFC when the currency no longer has to be held as evidence. This notification will remove the currency from the General Ledger (Exhibit 13-1).
5. The seized currency should be retained as evidence until the special agent receives notification to deposit the currency from either the Assistant Commissioner, CI, or the U.S. Attorney's office. In either situation, the Chief, CI, will document the file by memorandum as to the retention, or not, of the currency and the basis for the decision.

[9.7] 13.6.1  (04-30-1998)
Currency Stored In Safe Deposit Boxes

1. The use of safe deposit boxes is acceptable when necessary in storing currency seized and retained for evidentiary purposes. To preserve the integrity of the chain of custody over seized items, strict procedures must be followed in using a safe deposit box for storage. The safe deposit box will be set up to require the signatures of two special agents, one of whom should be in CI management. An entry log reflecting the dates of entry, the persons entering, and a brief description of the purpose for entry shall be maintained and kept in CI files.
2. When the safe deposit box is used to store items from multiple seizures, no commingling of the items is allowed. To preclude this, the items from each seizure must be placed in a sealed envelope/container and initialed and dated prior to placement in the safe deposit box. At a minimum, the case agent of each multiple seizure should be one of the authorized signatures.
3. If entry is necessary in multiple seizure situations involving different investigations, the case agent and CI management official should be the entry personnel. In the event that a seizure is made during hours when access to a safe deposit box is not possible, the Chief, CI, may authorize the seized items to be stored in a CI safe, on an interim basis, providing that access to such safe is limited and a log of entry is maintained as noted above. The seized items should be moved to a safe deposit box as soon as possible (preferably the next bank business day). All items secured in a safe deposit box should be inventoried on an annual basis.

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[9.7] 13.7  (04-30-1998)
TRACKING AND REPORTING SEIZED EVIDENCE

1. This section details the tracking of assets by the AFC. A discussion about Evidentiary Chain of Custody can be found in Chapter 6 of this Handbook.
2. The responsibility for tracking seized evidence and making appropriate reports rests with the district AFC.
3. At least quarterly, the AFTRAK SPU will distribute the seized assets inventory so that each district will reconcile seized assets to the inventory tracking system (AFTRAK). Districts with substantial seizure activity should conduct the reconciliation more frequently.
4. Corrections to AFTRAK are accomplished through transmittal of Form 4008S to the AFTRAK SPU.
5. The AFTRAK SPU will also provide a current inventory of assets reflected by Fiscal Management to each district once a quarter.
6. 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).
7. 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.
8. This inventory will also be reconciled with AFTRAK, the district inventory, and Fiscal Management records, i.e., the General Ledger.
9. At least quarterly, the district AFC will provide each Group Manager an AFTRAK and a district listing of items seized and held for evidence only, which are inventoried by Fiscal Management. These listings will be utilized for validation and reconciliation and will include evidence valued at both over and under $500.

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[9.7] 13.8  (04-30-1998)
CONVERTING ASSETS SEIZED FOR EVIDENCE TO ASSETS FOR FORFEITURE

1. Treasury Policy is that all property seized for administrative forfeiture must have administrative forfeiture action initiated, and notice of intent to forfeit (forfeiture letter) given to parties in interest within 60 days. Where a reasonable effort of notice has not been made within the 60-day period and no waiver has been obtained, the seized property must be returned and the forfeiture proceeding terminated. An asset seized as evidence becomes an asset seized for forfeiture when any initial action is taken to begin the forfeiture process. It is at this point that the 60-day period begins, as required by Treasury, for notification of parties-in-interest and for receipt of equitable sharing requests. See appropriate Chapters pertaining to seizures for forfeiture.
2. If property is seized as evidence and cannot be forfeited until completion of the criminal case, the 60-day requirement will not apply. The 60-day period will begin at the earliest moment that the Service, or the AUSA, or TEOAF determines that the property no longer has evidentiary value and that forfeiture proceedings can apply and should be initiated.
3. When assets seized for evidence become assets for forfeiture, the following must be done:
   1. Obtain a Subject Seizure Investigation (SSI) number from CIMIS.
   2. Prepare a detailed inventory of all property seized for forfeiture pursuant to a seizure warrant or Warrant of Arrest In Rem to properly account for the property seized and to preserve a record of its ownership and value.
   3. Update Form 4008, Seized Property Report and Form 4008S, Supplemental Seized Property Report to account for the conversion from an evidentiary seizure to a forfeiture seizure.
   4. The Assistant Regional Commissioner, Fiscal Management Branch, must also be instructed by memorandum (Exhibit 13-1) to remove these assets from the General Ledger once these items are transferred to EG&G or the USCS Suspense Account.
4. When deciding whether or not to seize an asset for forfeiture, the dollar value threshold of the asset must be considered as well as grand jury implications. (See Chapter 6 on Seizure Planning and Chapter 7 on Processing Assets in this Handbook for more information on these topics.)