Special agents may make seizures for evidence in the course of an investigation. This section covers the policies and procedures relating to the seizure of assets and property as evidence.

Gathering information necessary for the enforcement and administration of tax laws is granted to the Commissioner of Internal Revenue through Treasury Order 150-10. It is further clarified in Policy Statement 1-1.

)The authority for seizing evidence with a search warrant arises from the Fourth Amendment, 26 USC § 7608, et al.

The Asset Forfeiture Coordinator (AFC) is responsible for tracking all seized currency and firearms, regardless of value, and individual property items seized as evidence valued at $500 or more, on the Asset Forfeiture Tracking and Retrieval System (AFTRAK). The AFC must track individual property items seized as evidence that are valued at less than $500 on a field office database. Refer to the Asset Forfeiture Process Guide for the procedures for tracking seized evidence on AFTRAK.

In addition to currency and firearms, examples of individual property items seized as evidence that are subject to tracking by the AFC include computer equipment, jewelry, precious metals, and other valuables. Seized records and documentary evidence are not subject to tracking by the AFC.

A copy of the inventory of all search warrants executed by Criminal Investigation (CI) must be provided to the AFC by the responsible case agent or Supervisory Special Agent (SSA) to ensure that any property seized as evidence is properly tracked on AFTRAK or a field office database.

A seizure Investigative Activity (SIA) is required for all assets seized as evidence that the AFC is required to track on AFTRAK (see subsection 9.7.12.2(1) above).

Special agents and AFCs are to ensure that all property seized as evidence is securely stored in an area with limited access such as a safe or locked evidence room to preserve the chain of custody. An entry log to the storage area will be maintained reflecting:

In some instances, currency has a significant, independent, tangible, evidentiary purpose. This may be due to the presence of fingerprints, packaging in an incriminating manner, or presence of notations or other writings.

Generally, because of the security and internal control problems associated with the retention of large amounts of currency, it should not be held as evidence when photographs and/or videotape of the currency would be sufficient for use as evidence in court.

Criminal Investigation may seize firearms during a lawful arrest, search, seizure, or where an exception to the Fourth Amendment applies.

Special agents may seize firearms for forfeiture only when they are part of a collection of firearms and only with concurrence of the SAC.

Other occasions where firearms may be seized include the following:

Illegal possession is designated in 18 USC §922(d) to include the following:

Whenever IRS CI seizes a firearm in the course of a criminal investigation and takes it into Federal custody, a tracing request should be submitted to ATF’s National Tracking Center (NTC) via eTrace, an electronic firearms trace submission system, at the earliest time practicable. When submitting trace requests, IRS CI should keep in mind that firearms tracing will not always be successful. To help minimize the risk of an unsuccessful trace, consult ATF’s Firearms Tracing Guide available at http://www.atf.gov/publications/download/p/atf-p-3312-13.pdf, which provides comprehensive instructions on submitting trace requests. The earliest practicable time for tracing a recovered firearm may differ from case to case. While in most cases a trace request should be submitted shortly after the seizure of a firearm, there will be occasions where operational concerns justify delaying a trace request. In such instances, the trace should be conducted immediately upon resolution of the operational concerns.

If seized firearms are not illegal, their possession is not in violation of Federal law, will not be needed as evidence, and are not subject to forfeiture, they may be returned.

If seized firearms are illegal, or are legal but their possession is in violation of Federal law, ATF, FBI or local law enforcement should be contacted immediately regarding the adoption of the seizure.

Handling of seized firearms when the lawful owner is indicted and convicted of a felony can result in unique disposal problems for CI. It is unlawful for any person who has been convicted of a felony to possess a firearm, and it is unlawful for any person to sell or otherwise dispose of a weapon to any person knowing or having reasonable cause to believe that such person is under indictment for, or has been convicted of a felony. IRM 9.7.8, Disposition of Seized and Forfeited Property, provides guidance for disposing of seized firearms in these situations.

A weapon seized after August 23, 2000, from a person not legally entitled to possess it may be summarily forfeited without compensation to the possessor because it is considered contraband. If the weapon is seized for evidence and during the pendency of any proceeding (i.e., the time it is in the possession of the IRS), the owner is convicted of a felony, the weapon may be summarily forfeited as well.

When an asset no longer has evidentiary value, it may then be disposed of by returning the asset or by converting to a forfeiture action. In most cases, conversion of evidence will be to an administrative forfeiture. However, it may convert to a civil or criminal judicial forfeiture. If a decision is made to forfeit property seized for evidence, close coordination between CI and the forfeiture and criminal AUSA is essential.

Authorization of Seizure Investigative Activity (SIA) for an investigation must be approved on CIMIS when property seized as evidence is converted to forfeiture.

If the evidentiary seizure is converted to an administrative seizure for forfeiture, personal notice, in the form of a letter of Notice of Intent to Forfeit must be mailed, via Certified Mail-Return Receipt Requested, to all known interested parties to the action. The mailing must take place within 60 days of conversion to forfeiture. Notice will be prepared and mailed by the AFC.

If forfeiture will not be sought after seizure, then transferring the property to another law enforcement agency is an option. In some cases the agency to whom the property is to be transferred may serve a seizure warrant in order to obtain the property. A Form 5914, Release and Receipt of Property, must be signed by the AFC authorizing the release and the receiving agency signs as accepting the transfer.

When property is seized solely as evidence, expenses incurred for transportation, storage, etc., are not reimbursable from the Treasury Forfeiture Fund.

Expenses incurred in connection with property seized as evidence that is later converted to forfeiture, are reimbursable once forfeiture is initiated. The expenses must be incurred in the same fiscal year that the evidence was converted to forfeiture.