[Code of Federal Regulations]
[Title 26, Volume 18]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR403.26]

[Page 775-776]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 403_DISPOSITION OF SEIZED PERSONAL PROPERTY--Table of Contents
 
                   Subpart C_Seizures and Forfeitures
 
Sec. 403.26  Forfeiture of seized personal property.

    (a) Administrative forfeiture. (1) Personal property seized as 
subject to forfeiture under the internal revenue laws and this part 
which has an appraised value of $2,500.00 or less shall be forfeited to 
the United States in administrative forfeiture proceedings except as 
otherwise provided in this section.
    (2) If the Commissioner or his delegate seizes personal property 
which is forfeitable under the internal revenue laws and this part and 
which in his opinion is valued at $2,500.00 or less, he shall cause a 
list containing a particular description of the seized property to be 
prepared in duplicate and an appraisal thereof to be made by three sworn 
appraisers, selected by the Commissioner or his delegate, who shall be 
respectable and disinterested citizens of the United States residing 
within the internal revenue district wherein the seizure was made. Such 
list and appraisement shall be properly attested by the Commissioner or 
his delegate and such appraisers.
    (3) If such forfeitable personal property is found by the appraisers 
to be of the value of $2,500.00 or less, the Commissioner or his 
delegate shall publish

[[Page 776]]

a notice once a week for three consecutive weeks, in some newspaper of 
the judicial district where property was seized, describing the articles 
and stating the time, place, and cause of their seizure, and requiring 
any person claiming them to appear and make such claim within 30 days 
from the date of the first publication of such notice.
    (4) Any person claiming the personal property so seized, within the 
time specified in the notice, may file with the District Director of the 
internal revenue district in which the property was seized a claim, 
stating his interest in the articles seized, and may execute a bond to 
the United States in the penal sum of $250, conditioned that, in case of 
condemnation of the articles so seized, the obligors shall pay all the 
costs and expenses of the proceedings to obtain such condemnation. The 
District Director shall transmit such claim, together with the duplicate 
list or description of the property seized, to the United States 
Attorney for the district in which such property was seized. Both the 
claim and the cost bond should be executed in quadruplicate.
    (b) Judicial condemnation. Personal property seized as subject to 
forfeiture under the internal revenue laws and this part which has an 
appraised value of more than $2,500 and such seized property which has 
an appraised value of $2,500 or less with respect to which a bond has 
been filed pursuant to paragraph (a)(4) of this section, shall be 
forfeited to the United States in judicial condemnation proceedings, as 
authorized by the Director, General Legal Services Division, Office of 
Chief Counsel, Internal Revenue Service, or his delegate.

(Sec. 7323, 7325, 7326, 7401, 68A Stat. 869, 870, 873, 72 Stat. 1429, as 
amended; (26 U.S.C. 7323, 7325, 7326(a), 7401))

[T.D. 7433, 41 FR 39312, Sept. 15, 1976, as amended by T.D. 7525, 42 FR 
64344, Dec. 23, 1977]