5.10.2  Securing Approval for Seizure Actions and Post-Approval Actions

Manual Transmittal

April 11, 2013

Purpose

(1) This transmits a revision to IRM 5.10.2, Securing Approval for Seizure Actions and Post-Approval Actions, in IRM 5.10, Seizure and Sale.

Material Changes

(1) The title of the first section is changed from "General" to "Overview" and instructions for principal residence seizures are moved to their own section.

(2) A note is added to 5.10.2.3 clarifying that cash register contents are considered a tangible personal asset and their seizure from an individual taxpayer must be approved by the area director.

(3) A note added to 5.10.2.18(1) emphasizes the importance of correct delivery of seizure forms.

(4) SBSE Interim Guidance Memorandum 05-1212-105 is incorporated into 5.10.2.18(5)

(5) SBSE Interim Guidance Memorandum 05-1212-095 is incorporated into 5.10.2.18(6).

(6) An item has been added to the risk analysis in 5.10.2.18(3) to address economic hardship.

(7) Procedures for requesting an armed escort in 5.10.2.20.3 are replaced by a cross-reference to 5.1.3.5.2

(8) SBSE Interim Guidance Memorandum 05-1212-094 is incorporated into 5.10.2.22(6)-(10)

(9) Spelling and grammatical revisions are made throughout.

Effect on Other Documents

This IRM supersedes IRM 5.10.2, Securing Approval for Seizure Actions and Post-Approval Actions, dated July 3, 2009. SBSE Interim Guidance Memoranda 05-1212-095, Interim Guidance Memorandum for Pre and Post Seizure Review Criteria and Issuance of Form 5942 Reviewer’s Report, dated 12-20-2012, 05-1212-105,Interim Guidance Memorandum for Electronic Approval of Enforcement Actions, dated 12-31-2012, and 05-1212-094, Interim Guidance Memorandum for Seizure-Related Enforcement Expenses, dated 12-28-2012 have been incorporated into this IRM.

Audience

Small Business/Self-Employed Compliance Employees

Effective Date

(04-11-2013)

Scott D. Reisher
Director, Collection Policy

5.10.2.1  (04-11-2013)
Overview

  1. This section describes procedures for securing managerial approval for seizures and provisions for specialized assets. IRM 5.10.2.17., Perishable Goods, for instructions for the approval of the seizure and sale of perishable goods. Exhibit 5.10.2-1. for a seizure approval reference table. The intended audience for this section consists of revenue officers in field collection and Advisory offices.

  2. IRM sections 5.10.2.2 through 5.10.2.13 contain special instructions for seizures in particular circumstances. These procedures should be followed in the following instances:

    • Seizures requiring area director approval

    • Tangible Personal Property or Real Property (other than real property which is rented) Used in the Trade or Business of an Individual Taxpayer

    • Mobile homes

    • FCC broadcasting licenses

    • Historic properties

    • Religious organizations

    • Firearms

    • Controlled substances or drug paraphernalia

    • Material considered obscene or pornographic

    • High level drug dealers

    • Property with environmental considerations

    • Cleared contractor facilities

5.10.2.2  (04-11-2013)
Seizures Requiring Area Director Approval

  1. The following seizures require approval by the area director unless collection of the tax is in jeopardy:

    • All personal residences, including property owned by the taxpayer and used by any other person as a principal residence

      Note:

      See IRM 5.10.2.19, Judicial Approval for Principal Residence Seizures, for procedures when preparing to seize real property used as a principal residence by the taxpayer, taxpayer's spouse or former spouse, or taxpayer's minor children.

      Note:

      There is no jeopardy exception to the judicial approval requirements.

    • All tangible personal property or real property used in the trade or business of an individual taxpayer, including State Commercial Fishing or Wildlife Licenses

      Exception:

      Seizures of real property rented as anything other than a principal residence only require territory manager approval.

    • Perishable goods determination/Perishable goods seizure

    • Contents of a personal residence, including items located in garages and other structures on the land on which the residence is located

    • Firearms

    • Controlled Substances and Drug Paraphernalia

    • Material Considered Obscene or Pornographic

    • Stock in an Individual Retirement Account

  2. In addition to area director concurrence, judicial approval is required for certain principal residence seizures. IRM 5.10.2.19., Judicial Approval for Principal Residence Seizures, for procedures when seeking judicial approval of the seizure of a taxpayer's principal residence. This includes any real property used as a principal residence by any of the following individuals:

    • Taxpayer

    • Taxpayer's spouse or former spouse

    • Taxpayer's minor children

    Reminder:

    When planning to seize improved real property, the revenue officer will need to determine whether the relationship of any of the current occupants to the taxpayer meets the requirement for securing judicial approval.

5.10.2.3  (04-11-2013)
Tangible Personal Property or Real Property (Other than Real Property Which is Rented) Used in the Trade or Business of an Individual Taxpayer

  1. The prior written approval of the area director must be secured for seizure of these types of assets unless collection of the tax is in jeopardy. The revenue officer must document in the history that the taxpayer's other assets subject to collection are insufficient to satisfy the liability and expenses of the proceeding (see IRM 5.17.3.4.6, Seizure of Business Assets).

    Note:

    The contents of a cash register are considered tangible personal property. Therefore, the area director must approve any such seizure when the cash register is used in the trade or business of an individual taxpayer.

  2. If the asset to be seized is a state commercial fish or wildlife license, the revenue officer must consider the value of any future income that could be derived from the commercial sale of fish or wildlife harvested under the license.

  3. This approval level is based on the actual use of the asset, not the type of liability for which the seizure is being conducted.

  4. For the purpose of determining seizure approval authority, a liquor license is considered a tangible asset. Area director approval is required to seize a liquor license from a sole proprietorship.

  5. Following are examples that meet the definition of tangible personal or real property used in the trade or business of an individual taxpayer:

    1. Example:

      The taxpayer owns a restaurant as a sole proprietor. The revenue officer determines the next appropriate action is to seize the contents of the restaurant including the tables, chairs, kitchen equipment, and liquor license. The required approval level for this seizure is the area director.

      Example:

      The taxpayer owns real property with waterfront access to a river which includes a boat dock. He operates guided duck hunting and fishing trips as a sole proprietorship on this property and sells temporary permits allowing unguided access onto both the real property and the dock. A determination is made that sufficient equity exists in the real property and seizure is the next appropriate action. The required approval level for this seizure is the area director.

      Example:

      A self-employed real estate agent uses their vehicle as transportation for their business. The taxpayer owes Form 1040, U.S. Individual Income taxes and the revenue officer determines seizure of the vehicle is the next appropriate action. The required approval level for this seizure is the area director.

5.10.2.4  (07-03-2009)
Mobile Homes

  1. A mobile home may be either real or personal property, depending upon state or local law. It is important to make this determination since personal property must be reduced to possession in order for there to be a valid seizure. Therefore, prior to seizure of a mobile home, the revenue officer should determine the type of property involved. It may be necessary to confer with Advisory and request an opinion from area counsel.

  2. The request should:

    • Describe the property.

    • State whether the mobile home is attached to the ground and, if so, by what means.

    • Include information on the current use being made of the mobile home.

  3. If it is anticipated that the contents will be seized, provide information as to the type of property involved. The approval level will depend on whether the asset is a principal residence, other residence, business asset, etc.

5.10.2.5  (10-01-2004)
FCC Broadcasting Licenses

  1. Administrative seizure and sale of FCC broadcasting licenses is not feasible due to the difficulties involved in the transfer of ownership without the approval of the Federal Communications Commission. However, levy against other assets of the taxpayer's business is still appropriate.

5.10.2.6  (10-01-2004)
Historic Properties

  1. The National Historic Preservation Act (NHPA) was enacted to preserve irreplaceable assets of historical significance. Prior to a seizure of such assets, area counsel must be consulted.

  2. The following characteristics are indications of historical or cultural properties that fall under 36 CFR Part 800:

    • A significance in history of the architecture, archeology, and/or culture in structures and objects

    • An association with events in history

    • An association with historical figures

    • Distinctive characteristics of period architecture, construction, artistic significance, or information important to history

    • The area is declared historical

5.10.2.7  (04-11-2013)
Religious Organizations and Religious Freedom Restoration Act

  1. Seizure of assets belonging to a religious organization is a sensitive matter. In addition to consideration of alternative methods of resolution, revenue officers must consider the implications of the Religious Freedom Restoration Act of 1993 which was established to protect the free exercise of religion.

  2. Revenue officers must secure area counsel's approval before seeking other appropriate approvals when proposing the seizure of the assets of a religious organization.

5.10.2.8  (07-03-2009)
Firearms

  1. Firearms of substantial value may be seized if they are included as a business asset (e.g., the inventory of a sports equipment outlet, hardware store, or gunsmith). Because of the sensitive nature of this type of seizure, approval by the area director is required. Prior to the seizure, the revenue officer must contact the Property Appraisal and Liquidation Specialist (PALS) to discuss the potential seizure. The PALS should contact the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for information regarding firearms sales.

    Note:

    Consider recommending a suit to foreclose the federal tax lien instead of seizure.

  2. Single guns or firearms that are customarily retained for personal use should not be seized unless their value is such that a suit to foreclose the Federal tax lien may be appropriately recommended. Certain arms for personal use may be exempt from seizure (IRM 5.10.1.3.3.3(2), Equity Determination - Exempt Assets).

  3. If firearms for personal use are unexpectedly encountered during a seizure, Criminal Investigation (CI) or TIGTA should be immediately contacted so they can respond to the seizure location to advise the revenue officer of the appropriate action to take and to provide protection for the revenue officer at the time these items are handed over to the taxpayer or his or her representative. These items should not be listed on Form 2433 unless they are actually being seized.

  4. If firearms are seized, contact CI for assistance in making a determination as to whether the arms are contraband or subject to forfeiture under the Gun Control Act of 1968 or by virtue of state or local law. This action should be taken prior to any disposition of the seized arms. See IRM 5.10.4.5(15), Actions to Release and Return Property, for the procedures to release property when another government agency becomes involved. If the taxpayer is a convicted felon, the firearms may not be released back to the taxpayer. The revenue officer must contact area counsel, CI, and ATF for guidance on the appropriate disposition of the firearms.

  5. After all the required actions pertaining to the seizure of firearms have been taken and the seizure is executed, the revenue officer will transfer custody of the firearms to the PALS. The PALS may either conduct the sale or outsource the sale of firearms to an ATF licensed auctioneer. If the PALS conducts the sale, he or she must use an authorized dealer to conduct any required background checks and to prepare sale paperwork required by law. The PALS will issue a Form 2435, Certificate of Sale of Seized Property, once the authorized dealer has completed the required actions and verified the purchaser meets the legal requirements to purchase, own, or possess a firearm.

    Exception:

    Firearms that are primarily collector's items, as described in IRC 5845, may be sold by the PALS at public auction or sealed bid sale. Consult ATF if there are any questions about whether a specific firearm meets this definition.

5.10.2.9  (04-11-2013)
Controlled Substances or Drug Paraphernalia

  1. Because of the sensitive nature of these types of seizures, approval of the area director is required. See IRM 5.10.3.17, Controlled Substances, for instructions on the disposal of controlled substances (i.e., narcotics, stimulants, depressants, tranquilizers, and hallucinogenic drugs) after seizure.

  2. Drug paraphernalia generally includes such items as pipes, syringes and other devices designed to introduce drugs into the human body. Do not seize drug paraphernalia unless it consists of wholesale or retail inventory.

  3. These assets should not be seized unless they are the sole asset through which collection can be enforced. Other avenues of collection, such as levy on bank accounts or accounts receivable, or seizure of vehicles, cash register contents, or furniture and fixtures, should be used instead.

  4. If other assets will not satisfy the liabilities, a seizure may be made of the controlled substances or drug paraphernalia. Contact area counsel before such material is seized.

  5. In no event should drug paraphernalia be advertised or offered for sale until the following actions are taken:

    1. Contact local authorities to determine whether possession of such material violates any local law — if possession is illegal, the material should be released to those authorities.

    2. If possession is not illegal or authorities refuse to accept the material, refer the matter to area counsel for an opinion as to whether administrative or judicial sale of such material is legal. Area counsel should be contacted for an opinion in any case where there is a question whether the material seized is drug paraphernalia.

    3. Once counsel issues an opinion, submit a report to the area director outlining all of the pertinent facts in the case, including the alternative collection measures which were taken or explored prior to seizure of such material and the results of the risk analysis.

5.10.2.10  (10-01-2004)
Material Considered Obscene or Pornographic

  1. Because of the nature of this type of seizure, the approval of the area director is required. Other avenues of collection, such as levy on bank accounts and/or accounts receivables, seizure of vehicles, cash register contents, or furniture and fixtures, should be used prior to seizing obscene or pornographic material.

  2. If other assets will not satisfy the liabilities, a seizure may be made of the obscene or pornographic material. Contact area counsel before such material is seized. In no event should the material be advertised or offered for sale until the following actions are taken:

    1. Contact local authorities to determine whether possession of such material violates any local law. If possession is illegal, the material should be released to those authorities.

    2. If possession is not illegal or authorities refuse to accept the material, refer the matter to area counsel for an opinion as to whether administrative or judicial sale of such material is legal. Area counsel should be contacted for an opinion in any case where there is a question whether the material seized is obscene or pornographic.

    3. Once Counsel issues an opinion, submit a report to the area director outlining all of the pertinent facts in the case, including the alternative collection measures which were taken or explored prior to seizure of such material and the results of the risk analysis.

5.10.2.11  (07-03-2009)
High Level Drug Dealers

  1. Service personnel are not authorized to participate in arrests, raids and similar activities with Drug Enforcement Administration (DEA) personnel. However, revenue officers may take seizure action against narcotics-related taxpayers in connection with jeopardy or termination assessments.

  2. Because of the nature of this type of seizure, the approval of the area director is required. Prior to making personal contact, the provisions of IRM 5.1.3.5, Armed Escort to Contact a Taxpayer, should be reviewed.

5.10.2.12  (04-11-2013)
Property With Environmental Considerations

  1. Several types of business may create employee safety issues and environmental concerns if they are seized. Some examples are:

    • Battery charging and handling operations

    • Laboratories

    • X-Ray equipment Facilities

    • Facilities with asbestos or Polychlorinated Biphenyls (PCB's)

    • Firing ranges

    • Warehouses storing hazardous or toxic materials

    • Photo processing or graphic arts facilities

    • Printing, etching, or plating plants

    • Welding and sheet metal shops

    • Roofing contractors

    • Auto repair and paint shops

    • Waste disposal facilities or incinerators

    • Lumber yards and processing plants

  2. Before seizing property from these or similar businesses, consider the following employee safety and environmental factors :

    1. What were the past and current uses of the property?

    2. Are there any indications of the presence of asbestos?

    3. Were any chemicals or fuels handled at the site?

    4. Are there now, or have there ever been, any underground storage tanks on the property?

    5. Are there electrical transformers, capacitors, or other equipment that may contain PCB?

    6. Are there groundwater wells on the property, or is the groundwater in the immediate area used as a source of drinking water?

    7. Could the activities at adjacent businesses or properties pose potential environmental risks?

    8. Is the property, or any of the adjacent properties, on a federal, state, or local list of hazardous waste or contaminated sites?

    9. Is the property the subject of environmental litigation, regulatory citations, or enforcement action?

  3. Some of the indicators of potential environmental concerns are:

    • Chemicals stored

    • Obvious physical signs of contamination, such as stained soil or concrete, vegetation damage, foul or unusual odors, or oily sheens or discoloration on the surface water on or around the property

    • Warning or cautionary signs outlining some occupational or chemical hazard

    • Spills of unknown substances on the floor

    • Personal protective equipment near employee work stations

  4. Prior to seizing these types of establishments, employees should:

    • Take all necessary safety precautions.

    • Determine whether the disposal costs of the hazardous materials and any required remediation of the property would exceed the potential proceeds from the sale of the establishment's assets.

  5. Take the following actions if property is seized and environmental hazards are discovered:

    1. In the case of the release, spill, or leak of any chemical products, including liquids, gases, or solids, immediately contact the local hazardous materials response authority, e.g. local fire department.

    2. Report the incident immediately to the local IRS Safety Officer. A listing of local IRS area safety officers is available on the IRS Agency-Wide Shared Services (AWSS) website

    3. Refer to IRM 1.14.5, Occupational Safety and Health Program, section 1.14.5.5, Responsibilities.

5.10.2.13  (01-01-2006)
Cleared Contractor Facility

  1. In order to mitigate the possibility of compromise of "classified" material, liaison has been established between the Internal Revenue Service and the Defense Contract Administration Services Region (DCASR).

  2. The Defense Industrial Security Program (DISP) requires a contractor participating in the program to safeguard "classified" material and to report the termination of business for any reason. The reporting of a closure is essential to the protection of the "classified" material. DCASR representatives will establish liaison with the Internal Revenue Service area directors whose offices lie within a DCASR.

  3. When considering seizure of this type of firm, the revenue officer will ask a responsible officer or the owner if the firm:

    • Had been or is now a participant in the DISP

    • Is cleared to perform on classified government contracts

    • Is currently in possession of any classified material for an ongoing or terminated contract

      Note:

      The revenue officer should consider the precautions necessary to secure this type of facility as well as the fact that classified material will be released to DCASR (IRM 5.10.2.12(6)) when determining whether seizure would be appropriate.

  4. If a contractor answers yes to any of the above questions, after seizure provide immediate notice to the Director of Industrial Security for the DCASR having jurisdiction over the area. Notice may be given by either of the following methods:

    • Contacting the DCASR by telephone

    • Sending a copy of Form 2433, Notice of Seizure, to the DCASR

  5. If the place of business has been closed by the seizure, arrangements should be made to permit access to the premises by the DCASR representative.

  6. Any classified items that have been placed under seizure should be released to the DCASR representative upon presentation of official credentials. Form 668–E, Release of Levy, will be used.

5.10.2.14  (04-11-2013)
Consent or Writ Determination

  1. The Supreme Court of the United States held in G.M. Leasing Corp. vs. United States, 429 U.S. 338 (1977), that an entry without a warrant onto the private areas of personal or business premises of a taxpayer for the purpose of seizing property to satisfy a tax liability is in violation of the Fourth Amendment to the Constitution of the United States. The revenue officer must determine whether a consent or writ will be required prior to making the seizure. See IRM 5.17.4.13, Writs of Entry.

    Note:

    Contact Advisory prior to seizure to determine whether any actions will be needed to expedite the writ process in case the taxpayer refuses to sign the consent.

  2. Before entering into a private area, the revenue officer must secure either:

    • Written consent from the rightful occupant (IRM 5.10.3.3, Conducting the Seizure - Securing Consent), or

    • A court order (writ) permitting entry (IRM 5.10.3.5, Writ Procedures)

  3. The revenue officer must determine if the assets are located in a private area. Some common characteristics of a private area include:

    • No accessibility to the general public

    • Posted signs and warnings against entry

    • Employee access only

    • Areas with an expectation of privacy

    • Covered or attached areas

    • Areas behind counters

  4. Examples of common private areas include:

    • Restaurant kitchen areas

    • Service departments

    • Private self-storage facilities

    • Garages and other attached or unattached structures

    • Product storage areas for retail establishments

    • Manufacturing plant production properties

    • Fenced properties

    • Cash registers

    • Safe deposit boxes

    • Company office areas

  5. Generally, in situations involving seizure of assets located on private premises, consent to enter will first be sought from the taxpayer or rightful occupant, as applicable. Only after consent has been denied will the revenue officer request a Writ of Entry. Case file documentation is extremely important, especially when there are exceptions to this provision. Exceptions are limited to the following situations:

    • When it is believed that advance notice will jeopardize the safety of the revenue officer(s)

    • When attempts to contact the taxpayer or rightful occupant fail

    • When there are substantiated concerns that the taxpayer will refuse consent and then place assets beyond the reach of the IRS while a request for Writ of Entry is pending

  6. In situations where it is believed that the taxpayer may try to place assets beyond the reach of the Service, or if the taxpayer has previously placed assets beyond the Service's grasp after having been forewarned of enforced collection by the consent request, a Writ of Entry (IRM 5.10.3.5, Writ Procedures) should be sought without attempting consent procedures. The affidavit furnished to the court must state the reason why an attempt to secure consent would compromise collection efforts.

  7. Prior to requesting the Writ of Entry, the reason a consent is not being sought must be documented by the revenue officer and included in the approval package documentation. The request requires concurrence by the level of management above the group manager. The approving official will document concurrence in the ICS history. This authority should be used in extremely rare circumstances. The mere loss of the element of surprise will generally not be sufficient cause to justify an exception.

  8. A Writ of Entry is not a search warrant nor its equivalent. A search warrant cannot be issued to a revenue officer authorizing entry upon private premises to search for property to be seized for distraint purposes.

  9. A consent or Writ of Entry is not an eviction of the taxpayer or rightful occupant, nor is it approval to store the assets on site without entering into an agreement with the rightful occupant. The ability to take possession and control of the real estate when the seizure involves either the real estate or leasehold interest housing the personal property is a separate issue.

5.10.2.15  (07-03-2009)
Contents of Residence - Consent or Writ Required

  1. Revenue officers must consider a taxpayer’s reasonable expectation of privacy when seizing the contents of a residence. A Consent to Enter private premises or a Writ of Entry must be obtained before seizing any assets considered the contents of a residence, and these seizures must be approved by the area director. The taxpayer’s reasonable expectation of privacy extends to areas and buildings close to the residence. Thus, the definition of "contents of a residence" includes all items, excluding motor vehicles, located in garages and other structures on the land on which the principal residence is located.

5.10.2.16  (07-03-2009)
Motor Vehicles - Determining if Consent or Writ is Required

  1. When a motor vehicle is being seized, a Consent or Writ is not required if the motor vehicle is parked in any of the following locations:

    • On public property, such as a street, or county road

    • In an unobstructed driveway or front yard

    • On an unsupervised portion of a third party’s premises which is accessible to the general public when the premises are accessible to the general public such as a public parking lot or public garage.

  2. If there is any obstruction, such as a fence, chain, or rope, which would indicate that entry onto the driveway or front yard would constitute an invasion of the taxpayer’s privacy, a consent or writ is required. In addition, the vehicle must not be enclosed by any structure, such as a garage or carport.

  3. Area director approval is required if the motor vehicle is used in the trade or business of an individual taxpayer.

5.10.2.17  (04-11-2013)
Perishable Goods

  1. See IRM 5.10.1.4 and 5.10.1.5 for criteria and pre-seizure development procedures for perishable goods.

  2. To secure approval for a seizure and expedited sale of property under IRC 6336, the revenue officer must prepare a memorandum to the area director. In addition to the information required for all seizures outlined in IRM 5.10.2.17, Securing Managerial Approval of Seizure Actions, include the following information in the memorandum:

    • Name and address of taxpayer

    • Amount of the levy

    • Proposed date of seizure

    • Short description of the property to be seized

    • The perishable goods criterion selected

    • The appraised value of the property

    • The expected net sale proceeds under IRC 6335 and 6336

    The PALS Perishable Goods Criteria and Sale Plan memorandum must be attached to this memorandum.

  3. The area director will determine whether the property seized is of a type to which an expedited sale under IRC 6336 is applicable. If he or she determines the property is not perishable within the meaning of IRC 6336, he or she will inform the revenue officer and normal seizure and sale procedures will be followed. If the area director agrees that the property is perishable, he or she will approve Form 668–B, Levy and advise the revenue officer to proceed. If the seizure and sale is approved as a normal IRC 6335 sale, the revenue officer and PALS will discuss and develop an appropriate seizure and sale case strategy given the changes to the initial plan.

  4. IRM 5.10.4.15, Pre-Sale Procedures for Perishable Goods, contains procedures for the sale of perishable goods. The PALS function will have responsibility for all perishable goods sales with assistance from the revenue officers.

5.10.2.18  (04-11-2013)
Securing Managerial Approval of Seizure Actions

  1. If all of the IRM requirements have been met and seizure is the appropriate case action, the revenue officer should enter the appropriate asset information into the ICS seizure application and then use the application to prepare Form 13719, Pre-Seizure Checklist and Approval Request (Exhibit 5.10.2–2) and Form 668–B, Levy. See Exhibit 5.10.2-3, Form 668-B for instructions on preparation. The revenue officer should review the IRM procedures for conducting the seizure to determine whether any special circumstances should be addressed before the seizure is conducted. The revenue officer should also determine to whom and where the seizure documents must be delivered (IRM 5.10.3.6, Seizing the Property, and IRM 5.10.3.20, Notice of Seizure Form 2433 Delivery).

    Note:

    See IRM 5.10.2.19, Judicial Approval for Principal Residence Seizures, for the procedures to follow when preparing to seize real property used as a principal residence by the taxpayer, taxpayer's spouse or former spouse, or taxpayer's minor children.

    Note:

    The location and means of delivery of seizure documents are specified by IRC 6335. Failure to follow IRM instructions in IRM 5.10.3.20 can lead to significant problems and may render the seizure and sale invalid. If there is any question as to delivery requirements, consult Advisory section through your manager.

  2. The determination to seize and authority to sign Form 668–B, Levy, may be delegated to revenue officers GS-09 and above. Delegation authority for approving Form 668–B is included in SB/SE Delegation Order 5.1.

  3. The case file and seizure approval package must contain the appropriate documentation to justify the seizure action. The approval package should include an adequate description of the property that is to be seized. The following information must be included in a summarizing history entry or on a separate fact sheet:

    • Verification of the liability (IRM 5.10.1.3.1, Verifying the Liability)

    • Economic hardship - has the taxpayer substantiated that a verifiable economic hardship condition currently exists (or would be created by the seizure) as described in IRM 5.11.2.2.1.4?

    • Documentation of estimated minimum net sale proceeds (IRM 5.10.1.3.3, Equity Determination)

    • Discussion of alternatives that were considered (IRM 5.10.1.3.2, Alternative Methods of Collection)

    • Results of risk analysis (IRM 5.10.1.3.2, Alternative Methods of Collection)

    • Due process notification with appropriate forms and publications (IRM 5.10.1.7, Pre-Seizure Taxpayer Notifications)

    • Attempts to personally notify the taxpayer of proposed seizure (IRM 5.10.1.7.2, Personal Contact to Advise the Taxpayer of Proposed Seizure Action)

    • Whether a consent or writ will be required (IRM 5.10.2.14, Consent or Writ Determination)

  4. The case file should then be submitted for approval through the appropriate levels of management. The approval package must contain the following information:

    • Form 13719, Pre-Seizure Checklist and Approval Request, (Exhibit 5.10.2–2); the checklist should reference the appropriate history entry or fact sheet paragraph reference where the required action can be verified; "N/A" may only be entered for "Individual Taxpayer — Exempt Assets Considered" and "Individual taxpayer — Business Assets/ Other assets were Considered"

    • Form 668–B (enter name of area director on Form 668-B, only if seizure requires director approval)

    • NFTL Copies

    • Preliminary Form 2434–B

    • Case History or Fact Sheet addressing all required items in 5.10.2.18, Securing Managerial Approval of Seizure Actions

    • For real property seizures, include Form 2433 and deed(s) with the approval package

      Note:

      For real estate, the description should indicate whether the real estate is improved or unimproved. The approval package will address whether there are commercial or residential structures on the property, intended and actual use, whether or not any property is being used by any individual as a residence, and any other information that will allow the approving official to know exactly what type of property will be seized. This will help ensure the appropriate approval level is secured for the type of property being seized.

    • For personal property seizures, include Form 2433, with the property description blank or filled in if the assets are few and known, such as specific vehicles.

    • Any other relevant items, such as title reports, appraisals, L-1058, L-3174, L-1029, information on to whom seizure documents must be delivered, etc.

  5. All approvals must be written and will be retained with the case file. (An electronic signature is acceptable evidence of approval for Form 668-B.) All Collection seizures will require a minimum approval level of the territory manager. Exhibit 5.10.2-1. for a chart containing asset types and approving official. The revenue officer group manager will review the case file for accuracy and approval of the seizure action and forward the approved file to Advisory. The case file must be reviewed by Advisory for technical accuracy after group manager review and before it is forwarded to the territory manager for seizure approval. The revenue officer should work with Advisory throughout the entire seizure process whenever there are questions regarding the appropriate technical procedures to follow on the case.

  6. In order to clarify and provide for consistency in the pre-seizure review process, Advisory's review prior to seizure will be limited to the following items:

    • Approval Authority (per IRM 5.10.2-1)

    • Asset ownership and lien interest - verification of taxpayer ownership and/or interest in the asset (e.g. deed, title, purchase information) and lien interest per IRM 5.10.1.3.3(4)

    • Consideration of exempt assets (per 5.10.1.3.3.3)

    • Consent/Writ of Entry (per IRM 5.10.2.14)

    If the above items have been sufficiently addressed and are procedurally accurate, the seizure file will be forwarded to the territory manager for approval.

  7. The approving official(s) and the revenue officer should attempt to resolve any questions regarding the seizure as quickly as possible. Communications should be verbal, rather than written, whenever possible. Delays in the approval process should be avoided so that the seizure action is taken while it is appropriate and while the case information is still current. If the seizure is not approved, the reasons must be documented and retained as part of the case file.

5.10.2.19  (07-03-2009)
Judicial Approval for Principal Residence Seizures

  1. The Service must secure judicial approval prior to seizing a principal residence (Internal Revenue Code (IRC) section 6334(e)(1)). This includes any real property used as a principal residence by any of the following individuals:

    • Taxpayer

    • Taxpayer's spouse or former spouse

    • Taxpayer's minor children

    Note:

    For a principal residence seizure, the liability must exceed $5,000 (IRC 6334(a)(13)(A)).

  2. If there are issues related to ownership, nominee situations, collection statute concerns (CSED expires in one year or less), or other items, then a suit recommendation to foreclose the Federal Tax Lien and/or to reduce the tax claim to judgment may be the appropriate case action. Consult Advisory or area counsel for further guidance. Additional information on principal residence seizures is located in IRM 5.17.3.4.5, Seizure of a Residence/Principal Residence.

  3. If all of the requirements of IRM 5.10.1.3, and IRM 5.10.1.6 through IRM 5.10.1.7 have been met and it is determined that seizure is the appropriate case action, enter the asset information into the ICS seizure and sale application and begin preparing the suit narrative report (see IRM 5.17.4.9, Proceeding to Seize a Principal Residence, and IRM 5.17.12, Investigations and Reports, for additional information).

  4. The format of the revenue officer’s suit narrative report is much the same as in other suit narrative reports. The suit narrative details the results of the investigation and contains the recommendation to seize the principal residence. Each section is labeled and paragraphs are numbered. The narrative should be complete and concise, and should contain only facts and not opinions. All supporting documents should be included as exhibits.

  5. The report begins with the taxpayer’s name, address, and taxpayer identification number, followed by three sections:

    • Introduction

    • Body

    • Conclusion and Recommendation

  6. The "Introduction" includes the following information:

    • A request for institution of civil action for judicial approval of a principal residence seizure

    • The amount of money expected as the net sale proceeds

    • The type(s) of tax and current outstanding balance(s), including accruals, through a current date; this information should be the same as the account information included on Form 4477, Civil Suit Recommendation

    • The earliest collection statute expiration date (CSED)

    • A summary of administrative actions taken or the reason why specific administrative actions were not taken

    • The need for urgent action if required

    Note:

    Settlement Option Procedures do not apply to these actions.

  7. The "Body" should contain a chronological presentation of the facts supported by exhibits. The following table describes the information and exhibits that should be included. Additional exhibits may be used as necessary.

    Topic Information to Include Exhibits
    Information about the taxpayer
    • Age

    • Health

    • Marital status

    • Occupation

    • Dependents

    • Tax compliance history

    • Current compliance

    • Any other factors that may bear on the case

    • Information on any related cases

    • ID of all persons holding valid power of attorney for or otherwise representing the taxpayer or other involved parties

     
    Information regarding occupants (including children)
    • Name(s)

    • Relationship(s) to the taxpayer

    • Brief history (Age, health, etc.)

    • Current mailing address of the occupant(s) of the principal residence

     
    Verification of the liability
    • Basis for assessment(s) (voluntarily filed, examination assessment, etc.)

    • Date of assessment(s)

    • Timeliness of the assessment(s) per IRC 6201

    • Date of notice and demand for payment for each liability

    • Certificates of Assessment (Form 4340) or other certified transcripts

    Collection Due Process (CDP)
    • Dates of CDP notification with appropriate forms and publications for each liability

    • Results of notification – any responses received from the taxpayer

    • Dates of any CDP or Equivalent hearings

    • Results/CDP determinations

    • A summary of the relevant issues raised in prior IRC 6330 hearings

    • Letter 1058

    • CDP filing information

    • Information received from Appeals

    • Results of CDP or Equivalent hearings

    Lien filing information for all modules
    • Lien filing information on all modules (dates and locations, including any refiled liens)

    • IRC 6320 notification for each module

    • Dates of any CDP or Equivalent hearings

    • Results/CDP determinations

    • A summary of the relevant issues raised in prior IRC 6320 hearings

    • Copies of Liens

    • CDP filing information

    • Information received from Appeals

    • Results of CDP or Equivalent hearings

    Property description
    • Accurate legal description of the property from the deed which has been recorded with the local recording office

    • Taxpayer’s ownership interest in the property

    • Any denial of ownership interest or evidence of such provided by the taxpayer or third party

    • Any additional Information to describe the property

    • Copy of Deed

    • Form 2433, Notice of Seizure

    Valuation of the Property/Encumbrances against property
    • Fair Market Value and how derived

    • Forced Sale Value and Minimum Bid Calculation

    • Encumbrances

    • Nature/Amount/Priority of any encumbrances

    • Identification of any parties with competing liens

    • Description of the nature and amount of anyone else’s interest in the property

    • Determination of expected net proceeds

    • Estimated minimum sale net proceeds calculation

    • Commercial Title search results

    • Letter 1029 or other documentation of current status and amount due for each encumbrance

    • Form 2434-B

    • Appraisal (if secured)

    • Commercial title report

    Sufficient information to establish that all other legal and procedural requirements relevant to the proposed seizure have been met, including IRC 6331(j) requirements
    • Discussion of Alternative Methods of Collection Considered/Risk Analysis

    • Attempts to personally notify the taxpayer of proposed seizure

    • All other pre-seizure requirements met

    Form 13719 (Pre-Seizure Approval and Checklist) - the checklist should reference the appropriate paragraph from the suit narrative where the action is addressed

  8. The "Conclusion and Recommendation" is the closing for the report. Include the following information in this section:

    • A brief summary of the recommendation for a principal residence seizure

    • A restatement of the request for institution of civil action

  9. The suit package should contain:

    • Form 4477, Civil Suit Recommendation (mark Item 3 as "Other" and enter "Judicial Approval for Principal Residence Seizure" )

    • Suit Narrative Report

    • Form 2434–B, Notice of Encumbrances Against or Interests in Property Offered for Sale

    • Form 2433, Notice of Seizure, with the current accurate legal description (and current derivation clause, if required)

    • Estimated minimum net sale proceeds calculation (worksheet, memo, or excerpt from ICS history)

    • Copies of Notices of Federal Tax Lien

    • Form 13719, Pre-Seizure Checklist and Approval Request; the checklist should reference the appropriate paragraph reference from the suit narrative where the action is addressed

    • Copy of Deed to Property

    • Commercial title report with explanation of title search results

    • Any other relevant documents, such as appraisals, L–1058, L–3174, L–1029, etc.

  10. The completed suit package should be forwarded from the group manager, through Advisory, and then through the appropriate levels of management, including the area director. Advisory will complete the pre-seizure review as part of the suit review and approval process.

  11. After approval of the suit recommendation, Advisory will submit the case to area counsel for referral to the Department of Justice (DOJ). The DOJ will file a petition with the court and will make an initial showing that:

    • The liability is due

    • The government has complied with all legal/administrative requirements

    • There are no collection alternatives to the principal residence seizure

  12. The taxpayer will be served with an order to show cause (Exhibit 5.10.2–4) why the residence should not be seized. In most cases, the revenue officer will be asked to serve the show cause order. Generally, the show cause order requires personal service or it may be left at the defendant's usual place of abode with someone of suitable age and discretion. Contact Advisory or counsel if there are any questions on the procedures for delivery of these documents. If the taxpayer files a response to the show cause order, a hearing will be held. The taxpayer cannot dispute the tax liability during this hearing.

  13. Where the property to be seized is also the principal residence of the taxpayer’s spouse, former spouse, or minor child, DOJ will send a "notice letter" to those parties informing them of the petition filed with the court and giving the number/address of the clerk of the court, if they wish to learn the date and location of the hearing.

    Note:

    These individuals will not be parties to the proceeding. Only the taxpayer will have an opportunity to be heard at the hearing.

  14. This notice letter also instructs the addressee to contact the revenue officer assigned the case to provide any other relevant information the Service should consider before seizure. The revenue officer should forward any information received to the DOJ trial attorney through Advisory.

  15. After the court order is received, the revenue officer should prepare Form 668-B, Levy, and secure the appropriate approvals, based on local guidelines. Form 668-B, Levy, includes only the periods for which the court order was approved.

    Reminder:

    A complete seizure package is not required and no additional Advisory review is required at this point since the necessary review took place prior to submitting the suit for approval.

  16. If judicial approval is denied, consult with Advisory, and, if appropriate, area counsel, to determine further case action.

5.10.2.20  (04-11-2013)
Post-Approval Actions

  1. After securing approval for the seizure, the revenue officer must determine when the seizure will be conducted. Coordination with the PALS is required at this point to facilitate transfer of custody of the property. The revenue officer must determine:

    • How many assisting employees will be needed

    • How the property will be inventoried

    • What equipment will be necessary

    • Whether all necessary forms have been prepared

    • The need for a consent or writ

    • Arrangements required for the transportation and storage of the assets

    • Whether an armed escort will be required

  2. Having the appropriate number of employees present for a seizure is critical. At least one other Service employee is required for a seizure. Additional employees may be required depending on many factors, such as:

    • The type and quantity of assets

    • Complexity of inventory

    • Degree of cooperation from the taxpayer

    • Landlord/vendor/utility issues

    • Need for removal and storage of assets

  3. In outlying offices where only one revenue officer is stationed, a revenue agent from the same location may assist with the seizure if approval is secured from the revenue agent's manager.

  4. If the use of an assisting Service employee is not feasible, the territory manager can approve the use of a local, state, or federal law enforcement officer. The non-Service employee has no authority to assist in the seizure and is used only as an observer. The case history must be documented with the circumstances leading to the use of a non-Service witness. The revenue officer must record the name, title, badge number, and other identifying information of the law enforcement officer.

  5. The assisting IRS employees should be briefed on:

    • The background of the case

    • Inventory issues

    • Transportation and storage plans for the assets

    • Potential for conflict

    • Any other factors relevant to the seizure

  6. The PALS may also provide assistance at the seizure for issues related to organizing, moving and securing the property, but not for the actual seizure action.

  7. If tenant-occupied property is involved in the seizure, the revenue officer will take whatever steps are necessary to ensure that innocent third parties are not financially injured by the seizure action. Also consider the safety and welfare of innocent third parties, livestock, and domestic animals.

5.10.2.20.1  (07-03-2009)
Necessary Equipment

  1. Planning for and having all of the necessary equipment to make the seizure is required to ensure that the seizure is completed efficiently.

  2. Prior to a seizure that will involve an extensive inventory, the revenue officer should inspect the property location to determine the:

    • Availability of water, electricity, or other needed utilities

    • Heat or air conditioning needs

    • Potential health hazards

    • Presence of an alarm system

    • Need for any other items or services unique to the location

  3. Depending on the type of assets being seized, the following equipment may be useful:

    • Hand tools, such as hammer, screwdrivers, pliers, and bolt cutters

    • Chains and locks to secure gates and storage units

    • Scissors, tape, markers, paper, warning tags

    • Flashlights

    • Mobile or cellular phones

5.10.2.20.2  (07-03-2009)
Necessary Forms

  1. The revenue officer should ensure that all necessary forms are completed or available. The revenue officer should have the following forms available:

    • Approved Form 668–B, Levy

    • Consent or Writ of Entry (if already secured)

    • Form 2433, Notice of Seizure

    • Form 911, Application for Taxpayer Assistance Order

    • Publication 1660, Collection Appeal Rights

    • Form 668–A, Notice of Levy, if the property is in the possession of a third party

    • Seizure warning tags (Forms 12911, 12912, or 12913)

    • Form 6888, US Government Purchase Order, or Government BankCard

5.10.2.20.3  (04-11-2013)
Armed Escorts

  1. Revenue officers are not authorized to carry or use firearms or other weapons, such as mace or pepper spray, and must be alert to situations that may call for the use of an armed escort. Employee safety is the first priority. A revenue officer should request an armed escort if there is any fear or concern for personal safety or if threatening circumstances develop. If an armed escort is requested, notify the PALS group manager.

  2. For procedures on requesting an armed escort, see IRM 5.1.3.5, Armed Escort to Contact a Taxpayer.

5.10.2.21  (07-03-2009)
Seizing Property Housing a United States Postal Service Facility

  1. Before seizing property housing a United States Postal Service facility:

    1. Advise the nearest postal inspector of the contemplated action.

    2. Discuss the effect of the seizure with the postal inspector.

    3. Make every effort to avoid interfering with continued postal service to the public during the seizure and sale of the property.

5.10.2.22  (04-11-2013)
Contracting for Services

  1. Estimated seizure related expenses should have been determined in consultation with the PALS prior to submitting the case for approval (IRM 5.10.1.3.3.1, Equity Determination - Expenses of Sale, and IRM 5.10.4.8, Establishment of the Minimum Bid). Once the seizure has been approved, the revenue officer should begin contracting for seizure related expenses.

  2. The revenue officer should have determined in the pre-approval stage whether the property will have to be removed from its location and stored at another facility (IRM 5.10.1.3.3.1, Equity Determination - Expenses of Sale). Whenever possible, revenue officers and PALS should use blanket purchase agreements (BPAs) or other contracts arranged by the procurement officer to obtain seizure-related services (e.g., towing, storage, and locksmith services). BPAs are contracts negotiated by a procurement officer. The advantages of a BPA are:

    1. There is a set price, usually at the lowest rate available.

    2. The vendor bills the Service through the contracting office.

  3. Revenue Officers, GS-09 and above, and PALS are authorized (Delegation Order No. 1-14, contained in IRM 1.2.40, (Servicewide Policies and Authorities, Delegations of Authority for Organization, Finance and Management Activities) to procure seizure related services with the following restrictions:

    1. Procurement authority is limited to $2,500 per service.

    2. Form 6888, U.S. Government Purchase Order—Invoice Voucher, or the Government Bankcard must be used for such purchases (PALS may also use convenience checks ).

    3. There must be sufficient funds reserved to cover the cost of the service(s); management must establish a system to ensure that funds are available prior to the revenue officer or PALS contracting for a service.

  4. Revenue officers and PALS can contract for seizure services where total expenses exceed $2,500 as long as the cost of a single service does not exceed that figure. For example, separate Forms 6888 or Government BankCard purchases can be used to contract for a $500 locksmith service, $2,000 storage, and a $200 towing charge, as long as all services are billed separately.

    Note:

    Do not split a single service into multiple billings to avoid the $2,500 threshold.

  5. IRM 5.10.3.8, Payment to Vendors for Services Less Than or Equal to $2,500, contains the instructions for the use and preparation of Form 6888. Form 6888 should only be used if the vendor will not accept the Government BankCard or convenience checks.

  6. Revenue officers (ROs) who do not have an individual enforcement card may experience difficulty paying seizure-related expenses if a vendor does not accept Form 6888, U.S. Government Purchase - Invoices -Voucher. Therefore, enforcement purchase authority has been added to the existing small purchase cards held by Field Collection territory secretaries. Territory secretaries will receive enforcement purchase card training and will be responsible for all requirements associated with the automated purchase card module.

  7. The RO will conduct a preliminary discussion with the vendor regarding the projected seizure date and secure an estimated cost. The RO will verify and confirm that the expense will not exceed $2,500 per transaction. If the selected vendor will not accept Form 6888, the RO may then contact his or her territory secretary for assistance. The RO will provide all necessary information so that the territory secretary can directly contact the vendor to procure the required services. This information will include the vendor's name, telephone number, date of service, estimated cost, and a description of the activity being funded.

    Note:

    If cost will exceed $2,500, do not order the services and do not contact a small purchase cardholder for bankcard assistance, as it is above their designated procurement authority. Instead, follow local procedures to complete a request for Procurement to issue a formal contract.

  8. In order to guarantee timely assistance and payment, the RO will make every effort to provide sufficient lead time to secure the territory secretary's assistance. The RO will generally secure payment assistance for a seizure expense from the territory secretary. However, as work schedule needs dictate, any territory secretary within the area may be contacted for assistance, following local procedures.

  9. As soon as possible after receipt of the services, the RO, via e-mail or fax, will provide the assisting territory secretary with verification the services were received. This can be done by annotating the invoice with the comment “Services Received and date (xx-xx-xxxx)”. The following are some examples of seizure-related expenses that territory secretaries are authorized to pay:

    • Seizure-related towing and/or storage

    • Seizure-related locksmith services

    • Advertising (e.g. for bidders or for sales of perishable goods)

    NOTE: This payment option cannot be used to procure title searches because other restrictions apply.

  10. If an indemnification clause is required based on the type of service being requested (e.g., towing, locksmith), the RO must scan and send by secure email a copy of the signed clause to the territory secretary. The RO will maintain the original signed clause with the case file.

  11. Form 6888, the Government BankCard, and convenience checks cannot be used when the cost exceeds $2,500 for a single service. If the seizure related service will cost more than $2,500, compile the information necessary to justify the expense and submit the request through the Integrated Procurement System (IPS) so the contracting officer can contract for the service through normal procurement channels. If a BPA is possible for a service exceeding $2,500, immediately contact the contracting officer to get the necessary competition or sole-source justification.

  12. Normally three estimates for service should be secured before submitting an IPS requisition. Some situations require a sole source justification if only one vendor is available. Some examples where sole source justification should be considered are:

    • When there is only one vendor for a particular service in a rural area

    • Assets are being stored where the property was seized and the rightful occupant has agreed to a rental amount

    • A special situation exists for a service that only a particular vendor can provide

  13. If, after contracting for a service, emergency situations are encountered or unanticipated costs or delays in the sale would raise the cost above $2,500, a requisition must be submitted to the contracting officer for procurement action.

  14. The requisition to the contracting officer must have the following information:

    • A full description of the items or services required

    • The cost of the items and services

    • The vendor's name, address, and telephone number

    • A signed narrative, explaining the circumstances which precluded the revenue officer from obtaining prior contracting officer approval

  15. Emergency contracting situations should be extremely rare since ratification of procurements in such situations must be approved by the appropriate Procurement Official, as stated in AWSS' Procurement Policy & Procedure 1.6a, Ratification Procedures. Ratifications could subject the person making an unauthorized procurement to disciplinary action.

5.10.2.23  (07-03-2009)
Lost or Stolen Form 6888 and Disposition of Completed or No Longer Needed Form 6888 Books

  1. If a Form 6888 book, individual Form 6888, or a portion of any Form 6888 is lost or stolen, the employee must prepare a report to his or her territory manager. The report should contain the following information:

    • Name and post of duty of the employee to whom the Forms 6888 were assigned

    • Order number of missing Forms 6888

    • Date Forms 6888 were lost or stolen

    • A brief statement of circumstances surrounding the loss or theft

    • A statement of action taken to recover the receipts

  2. The territory manager will immediately transmit the report to the controller responsible for that territory to notify him or her of the loss. This notification will ensure that the controller does not make any payment on lost or stolen Forms 6888. It is recommended that the controller be notified immediately by telephone, followed by the above report.

  3. If the lost or stolen Forms 6888 are later recovered, the territory manager and the appropriate controller should be notified promptly. The necessary identifying information, i.e., numbers, date reported lost or stolen, etc. should be provided to them.

  4. If Form 6888 books are issued to revenue officers or PALS, their managers should review the books during performance reviews in order to account for all Forms 6888. Completed books, or books from employees who no longer need them, should be submitted on Form 3210 through the appropriate management chain to the individual in the business unit responsible for ordering secure documents. The documents should be maintained following the procedures in IRM 10.2, Physical Security Program, and disposed of following the procedures in IRM 10.2.13, Information Protection.

Exhibit 5.10.2-1 
Asset Type and Approving Official: Reference 5.10.2.1

Asset Type Approval Authority JA- Judicial AD-Area Director TM-Territory Mgr.
  JA AD TM
REAL PROPERTY:      
Principal Residence – Primary dwelling of the taxpayer, the taxpayer’s spouse, former spouse and/or the taxpayer’s minor children. IRM 5.10.2.18 & IRC 6334(e)(1) X X  
Personal Residence – A principal residence of someone other than the taxpayer, the taxpayer’s spouse, former spouse and/or minor children. IRM 5.10.2.1(4) & IRM 5.17.3.4.5(3)   X  
Real property used in the trade or business of an individual taxpayer. IRM 5.10.2.1(4) & IRC 6334(e)(2)   X  
Historic Real Properties – Area counsel must be consulted prior to seizure. IRM 5.10.2.5(1)     X
Real Property belonging to a religious organization. If the property is being used as a residence, use the appropriate guidance listed above. Area counsel approval must be obtained before seeking other appropriate approvals when seizing property belonging to a religious organization. IRM 5.10.2.6(2)     X
PERSONAL PROPERTY:      
Tangible personal property used in the trade of business of an individual taxpayer. IRM 5.10.2.1(4) & IRC 6334(e)(2)   X  
Perishable goods – Seizure and expedited sale of property under IRC 6336. IRM 5.10.2.16   X  
Historic personal property – Area counsel must be consulted prior to seizure. IRM 5.10.2.5     X
Personal Property belonging to a religious organization. Area counsel approval must be obtained before seeking other appropriate approvals when seizing property belonging to a religious organization. IRM 5.10.2.6(2)     X
Firearms of substantial value may be seized if they are included as a business asset (sports equipment outlet, hardware store, gun shop, etc). Prior to the seizure the revenue officer must contact PALS who will contact area counsel and ATF. IRM 5.10.2.7   X  
Controlled substances or drug paraphernalia. IRM 5.10.2.8   X  
Material considered obscene or pornographic – Area counsel must be contacted before such material is seized. IRM 5.10.2.9   X  
High Level Drug Dealers (assets of narcotics related taxpayers in connection with jeopardy/termination assessments). IRM 5.10.2.10   X  
Property with environmental considerations. IRM 5.10.2.11     X
Cleared Contractor Facility. IRM 5.10.2.12     X

Exhibit 5.10.2-2 
Form 13719, Pre-Seizure Checklist and Approval Request Reference: 5.10.2.17

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Exhibit 5.10.2-3 
Form 668-B, Levy and Instructions Reference: 5.10.2.17

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Form 668B  
Instructions  
(Parts 1 - 4)  
1. Taxpayers name and address
2. Taxpayer Identification Number
3. Collection Territory
4. Type of tax (ie. 1040, 1120, 941, etc.)
5. Tax Period
6. Unpaid Balance of Assessment
7. Statutory Additions
8. Total (The total amount due of all modules on Form 668-B must match the total amount due on Form 2433, Notice of Seizure)
9. Location of the seizure
10. Date of seizure (should be completed the day of the seizure)
11. Signature of seizing revenue officer
12. Date revenue officer signs form and submits for approval
13. Name of taxpayer or taxpayer's representative
14 Taxpayer was present at inventory- select the appropriate box (yes/no)
15 Signature of seizing revenue office at the time of the seizure when taxpayer was asked to be present during inventory.

Exhibit 5.10.2-4 
Order to Show Cause Reference: 5.10.2.18(12)

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