9.7.9  Equitable Sharing and Reverse Asset Sharing

Manual Transmittal

July 28, 2015

Purpose

(1) This transmits revised IRM 9.7.9, Equitable Sharing and Reverse Asset Sharing.

Material Changes

(1) Subsection 9.7.9.3.3(1) is updated to correct the reference to Executive Office for Asset Forfeiture (EOAF) to Treasury Executive Office for Asset Forfeiture (TEOAF). All subsequent references to EOAF have been changed to TEOAF.

(2) Subsection 9.7.9.4.2 is re-written in accordance with the TEOAF issued Directive No. 34, Policy Limiting the Federal Adoption of Seizures by State and Local Law Enforcement Agencies, dated January 16, 2015.

(3) Subsection 9.7.9.5.1(2) is revised to remove the reference to IRM 9.7.5. The IRM 9.7.5 does not contain instructions for filling out a TD F 92-22.46. The instructions are part of Exhibit 9.7.9-3.

(4) Subsection 9.7.9.6.5(1) is updated to state that sharing in adoptive seizures is prohibited.

(5) Subsection 9.7.9.6.6(1) is revised to clarify foreign sharing, windfall situations or the transfer of real property.

(6) Exhibit 9.7.9-2 is updated to include the correct exhibit.

(7) Exhibits 9.7.9-3 and 9.7.9-5 are revised.

(8) Additional revisions, deletions, and grammatical changes were made throughout the section that did not result in substantive changes but contributed to procedural clarity of the subject matter.

Effect on Other Documents

This IRM supersedes IRM 9.7.9, Equitable Sharing and Reverse Asset Sharing dated August 11, 2008. This IRM also incorporates procedure(s) implemented by the Director, Operations Policy and Support, guidance memorandum dated April 16, 2015, [Subject: “Additional Guidance on TEOAF Directive No 34-Policy Limiting the Federal Adoption of Seizures by State and Local Law Enforcement Agencies”].

Audience

CI

Effective Date

(07-28-2015)

Domenic A. McClinton for Richard Weber
Chief, Criminal Investigation

9.7.9.1  (08-13-2003)
Overview

  1. One of the goals of the Department of the Treasury Asset Forfeiture Program is to encourage joint operations among Federal, state, and local law enforcement agencies, as well as foreign countries. The equitable sharing program has proved invaluable in fostering enhanced cooperation among Federal, state, local, and foreign law enforcement agencies.

  2. The Department of the Treasury Guide to Equitable Sharing for Foreign Countries and Federal, State, and Local Law Enforcement Agencies contains policies and procedures applicable to the sharing of assets that are seized and forfeited by Treasury law enforcement agencies. This Guide was designed not only for the Treasury law enforcement agencies, but for any Federal, state, or local law enforcement agency that files an equitable sharing request with a Treasury law enforcement agency.

  3. IRM 9.7.9, Equitable Sharing and Reverse Asset Sharing, closely follows the format of and contains excerpts from the Guide, which should be referred to as needed for additional or more detailed information. Each Asset Forfeiture Coordinator (AFC) should have a copy of the Guide for their own use and an additional supply to provide to agencies submitting equitable sharing requests with Criminal Investigation (CI).

  4. This section will also cover reverse asset sharing which is the single largest source of funding for CI's law enforcement initiatives.

9.7.9.2  (08-13-2003)
Sharing Authority

  1. Federal law establishes the authority of the Secretary of the Treasury to share federally forfeited property with participating Federal, state, and local law enforcement agencies.

  2. The intent of Congress in the sharing of forfeited property, as stated, is to ensure that any property shared with a law enforcement agency:

    1. Has a value that bears a reasonable relationship to the degree of direct participation to the law enforcement effort resulting in the forfeiture, taking into account the total value of all property forfeited and the total law enforcement effort with respect to the violation of law on which forfeiture is based; and

    2. Will serve to encourage further cooperation between the recipient agency and Federal law enforcement agencies.

9.7.9.3  (08-13-2003)
Agencies Eligible to Receive Treasury Equitable Sharing

  1. Any Federal, state, or local law enforcement agency, or foreign country, that directly participates in an investigation or prosecution that results in a federal forfeiture by a Treasury law enforcement agency may request an equitable share of the net proceeds of the forfeiture.

  2. If the forfeiture is completed by a Treasury law enforcement agency, then another Treasury law enforcement agency cannot apply for an equitable share of the proceeds unless the request is for tangible or real property. Monetary instruments cannot be shared between Treasury law enforcement agencies.

  3. US Attorney offices are not eligible to receive Treasury equitable sharing, however, state and local prosecutor offices that directly participate in an investigation or prosecution that results in a Treasury Federal forfeiture are eligible to receive Treasury equitable sharing. Refer to the Guide for examples of ways in which state and local prosecutors may qualify for an equitable share.

  4. Requesting Federal agencies must be participants in an authorized forfeiture fund that has statutory authority to deposit and spend forfeiture proceeds.

9.7.9.3.1  (08-13-2003)
Equitable Sharing with Foreign Countries

  1. The Secretary of the Treasury is authorized by statute to share any forfeited currency, sale proceeds, or property with the foreign country that participated in the seizure or forfeiture, if such transfer:

    1. has been agreed to by the Department of Justice

    2. has been approved by the Secretary of State

    3. is authorized in an international agreement between the United States and the foreign country and

    4. is made to a country that, where applicable, has been certified under 481(h) of the Foreign Assistance Act of 1961

9.7.9.3.2  (08-13-2003)
Equitable Sharing with the Office of Inspector General, United States Department of Agriculture

  1. The Office of Inspector General, US Department of Agriculture (OIG/USDA), the Department of Justice (DOJ), the US Postal Service, and the Department of the Treasury entered into a Memorandum of Understanding to establish the participation of OIG/USDA in the DOJ Asset Forfeiture Program and DOJ Asset Forfeiture Fund for forfeitures after May 5, 1998. As a participant in the DOJ Asset Forfeiture Fund, OIG/USDA is eligible to file for equitable shares that correspond to their degree of participation in law enforcement efforts resulting in forfeitures by Treasury law enforcement agencies. In addition, OIG/USDA is allowed, by statute, to file petitions for remission for 100 percent of the proceeds of the forfeited assets as a victim.

  2. To prevent a situation of duplicate filing for equitable sharing and a petition for remission by OIG/USDA, which results in a loss to the Treasury Forfeiture Fund, the Warrants and Forfeitures Section should be consulted on how to proceed when a field office is working with OIG/USDA in a joint investigation that involves forfeiture where CI is the seizing agency, and anticipates that OIG/USDA will file for equitable sharing.

9.7.9.3.3  (07-28-2015)
Transfer of Forfeited Property (To Federal Agencies that did not Participate in the Acts that Led to Seizure)

  1. The Director, Warrants and Forfeitures, may transfer for official use, personal property valued at $25,000 or less to an agency that did not participate in the seizure or forfeiture upon request by memorandum from the Special Agent in Charge (SAC) (See Exhibit 9.7.9–1). A request for transfer of property valued at more than $25,000 will be submitted by memorandum from the SAC to the Director, Treasury Executive Office for Asset Forfeiture (TEOAF), through the Warrants and Forfeitures Section (see Exhibit 9.7.9–2).

  2. If the requesting agency is not a Treasury law enforcement agency, they shall pay costs incurred by the Treasury Forfeiture Fund in connection with the forfeiture and transfer of any property.

9.7.9.4  (08-13-2003)
Two Ways to Participate in the Equitable Sharing Program

  1. There are two ways in which to participate in the equitable sharing program; through a joint investigation or the adoption of a Federal or foreign seizure.

9.7.9.4.1  (08-13-2003)
Joint Investigation

  1. Joint investigations are those in which Treasury law enforcement agencies work with other Federal, state, or local law enforcement agencies, or foreign countries, to enforce Federal criminal laws.

9.7.9.4.2  (07-28-2015)
Adoption of a Federal, State, Local, or Foreign Seizure

  1. Adoptive seizures are only those seizures where 100 percent of the pre-seizure activity was performed by the seizing agency. Seizures resulting from joint investigations or task force investigations are not adoptive seizures. State and local agencies generally request Federal adoption when, after making a seizure, they determine that a state forfeiture proceeding is not possible or that a Federal forfeiture proceeding would be more advantageous.

  2. There must be a state violation and a Federal basis for forfeiture in order for the seizure to be classified as an adoption.

  3. The TEOAF Directive Number 34, Policy Limiting the Federal Adoption of Seizures by State and Local Law Enforcement Agencies, sets general policies and procedures with respect to adoptions and covers the federal adoption form, Request for Adoption of State or Local Seizure (Exhibit 9.7.2–1), Federal investigative agency review and approval, time period to request an adoption, notice requirements, and retention of custody by state or local agency. Directive Number 34 is summarized as follows: Federal adoption of state and local seizures is prohibited except for property that directly relates to public safety concerns, including firearms, ammunition, explosives, the instrumentalities of child pornography, adulterated food products, counterfeit consumer goods and similar items that pose a public health and safety concern. The prohibition on federal adoption includes, but is not limited to, seizures by state or local law enforcement of vehicles, valuables, and cash. Cash is defined as currency and currency equivalents, such as postal money orders, personal and cashier’s checks, stored value cards, certificates of deposit, traveler’s checks, and U.S. savings bonds. Any other property that may trigger the public safety exception may be adopted federally with the Director of TEOAF’s approval sent through the Director of Warrants & Forfeiture. Equitable sharing is prohibited in any federal adoption. This does not impact joint investigations and does not apply under the following circumstances:

    1. Seizures by state and local authorities working together with federal authorities in a joint task force

    2. Seizures by state and local authorities that are the result of joint federal-state investigations or that are coordinated with federal authorities as part of ongoing federal investigations

    3. Seizures pursuant to federal seizure warrants, obtained from federal courts to take custody of assets originally seized under state law

  4. In the rare instance of an adoption of seized property that raises a public safety concern, CI will continue to follow the procedures set forth in IRM 9.7.2.7.3(5), which requires a legal review of the adoption by a Criminal Tax (CT) attorney and that a seizure warrant be obtained prior to taking custody of any assets seized by a state or local agency.

  5. In any instance where CI wishes to adopt a state or local seizure of property that it believes implicates public safety but is NOT listed in the previous paragraph (3), approval must be obtained by the Director of TEOAF through the Director of Warrants & Forfeiture prior to taking possession using the following process: 1) SAC prepared memo to Director of TEOAF, through Director of Warrants & Forfeiture; 2) TEOAF will provide a written decision on the adoption request which will be routed to the SAC by Warrants & Forfeiture and notice to all interested parties will be executed by IRS-CI. The prepared memorandum for the Director of TEOAF must contain the following information:

    1. The name and address of the seizing agency

    2. The date of the seizure

    3. The circumstances surrounding the seizure.

    4. The state violation upon which the seizure was predicated

    5. An itemized list of the assets seized

    6. An itemized list of the assets that are being considered for adoption (if different from item(e)

    7. The current location of the assets being considered for adoption

    8. The reason(s) why the adoption cannot/should not proceed under state law

    9. The facts that are believed to justify a “public safety” exception to the prohibition on adoptions

    10. Confirmation that a Turnover Order can and will be obtained prior to the adoption, if required under state law

  6. By statute, notice in an adoptive seizure must be sent not more than 90 days after the date of seizure by the state or local law enforcement agency. Criminal Investigation should seek local review of the adoption by CT Counsel and a Law and Fact Memorandum. The request for adoption should be made within 30 days from the date the property was seized by the state or local law enforcement agency.

9.7.9.5  (07-28-2015)
How to Apply for an Equitable Share

  1. Requests for equitable shares will be filed in the form prescribed by the Director, TEOAF.

9.7.9.5.1  (07-28-2015)
Federal, State, or Local Agencies

  1. After the seizure in a joint investigation, a Federal, state, or local agency may request a share of the property by submitting a Form TD F 92–22.46, Request for Transfer of Property Seized/Forfeited by a Treasury Agency, to CI. Exhibit 9.7.9–3 contains Form TD F 92–22.46 and supplemental instructions.

  2. A separate Form TD F 92–22.46 must be completed for each seizure; assets should not be grouped on one form. When multiple assets are seized, one Form TD F 92–22.46 may be filed with an attached listing of all the assets seized. See Exhibit 9.7.9-3, Form TD F 92–22.46, and supplemental instructions.

  3. The Form TD F 92–22.46 and the Department of Justice equitable sharing Form DAG-71 are virtually identical. The requesting law enforcement agency(ies) must make their requests to the department whose seizing agency completed the forfeiture.

9.7.9.5.2  (07-28-2015)
Foreign Countries

  1. The Secretary of the Treasury, pursuant to statutory authority, may share forfeited currency or proceeds with countries that participated directly or indirectly in any acts that led to the seizure or forfeiture, if the sharing:

    1. has the concurrence of the Department of Justice

    2. has the approval of the Department of State

    3. is authorized in an international agreement between the United States and the foreign country; and

    4. if applicable, has certification under 22 USC §2291j(b) of the foreign country in question

  2. The Director, Treasury Executive Office for Asset Forfeiture (TEOAF) makes the ultimate decision whether and how much to share after review and approval by the Department of State. No United States representative has the statutory authority to commit to asset sharing in any given case until an international forfeiture sharing agreement has been approved at the delegated levels of the Department of the Treasury (or Justice) and State.

  3. A foreign country may request a share of the property by contacting the US Embassy or country attache′ via a letter of request. The embassy should forward the letter of request to the appropriate field office.

9.7.9.5.3  (08-11-2008)
Time Limits for Filing an Equitable Sharing Request

  1. Equitable sharing requests should be submitted within 60 days after the date of seizure. The 60–day rule may be waived by the Director, Warrants and Forfeitures, upon a written request stating the reasons that justify a waiver for the late submission of the equitable sharing request. The request for a waiver must accompany the Form TD F 92–22.46.

  2. The date of seizure is generally the date the property is physically seized and taken into custody by CI. This is also true for criminal forfeitures where property is not seized until the court enters a preliminary order of forfeiture. In the case of a civil judicial forfeiture involving real property or other property not seized until a final judgment or order of forfeiture is entered, the date of seizure is the "post and walk" date or the date the warrants of arrest in rem are executed.

  3. For property that is seized as evidence, the date of seizure for forfeiture is generally the evidence seizure date or the initial date when action is taken to commence forfeiture proceedings against the property.

  4. In civil or criminal judicial forfeitures, an agency may amend its Form TD F 92–22.46 within 60 days after forfeiture to reflect any continued participation in the case.

  5. No equitable sharing request will be considered after two years from the date the forfeited property is disbursed, deposited into the Treasury Forfeiture Fund, or otherwise disposed of.

9.7.9.5.4  (07-28-2015)
Acknowledgments and Advice on Equitable Sharing Requests

  1. A lack of adequate communication between Treasury law enforcement agencies and the requesting agencies often leads to ill will and confusion of the equitable sharing process. In order to remedy this situation, TEOAF developed sample letters that are used to keep requesting agencies advised of the status of their equitable sharing request, while providing them with a contact name and telephone number of an agency representative who can furnish them with timely information regarding their equitable sharing requests. These letters are contained in TEOAF Directive Number 16, Equitable Sharing-Acknowledgments and Advice on Sharing Requests. Warrants and Forfeitures will send these letters to the requesting agencies after the equitable sharing requests are submitted for Headquarters/CI approval.

  2. Forfeiture, like all legal proceedings, takes time. Equitable sharing may occur only after the Federal forfeiture has been completed, the United States has taken clear title to the property, and a final sharing decision has been made by the appropriate official. Common causes of delay are listed in the Guide.

9.7.9.6  (08-11-2008)
How an Equitable Share is Calculated

  1. Equitable sharing is based on the net proceeds of the forfeiture. Net proceeds are calculated as follows: Gross receipts from forfeiture or the sale of the forfeited property, less:

    • qualified third party interests

    • CI investigation-related expenses

    • restitution/remission to victims through the petition process

    • any award paid to a federal informant regarding the asset

    • Treasury property management expenses

    • any reimbursements from the Treasury Forfeiture Fund to the requesting agency that relate to the particular seizure


    equals net proceeds available for equitable sharing.

  2. Generally, the Federal share will not be less than 20 percent.

9.7.9.6.1  (08-13-2003)
Equitable Sharing Involving a Single Item of Tangible Property

  1. In cases where only a single item of tangible property (e.g., a vehicle) is forfeited and a Federal, state or local agency, or foreign country requests that item rather than proceeds from the sale of the property, the Treasury Forfeiture Fund must recover its costs and its equitable share. If the requesting agency is unable to pay the costs and equitable share, the property shall be sold and the proceeds equitably distributed according to the formula in the previous paragraph. Exceptions to this requirement will be conservatively granted by Warrants and Forfeitures upon written assurances that:

    1. the requesting agency lacks funds or authority to make such payments and/or

    2. the forfeited item will fill a demonstrated need of the requesting agency

9.7.9.6.2  (08-13-2003)
Reimbursement of Federal Costs

  1. Where real or tangible personal property is transferred to a state or local law enforcement agency, the value of that property shall be charged against that agency's equitable share or other assets in the investigation. Where there are insufficient other assets against which to charge that share, the recipient state or local law enforcement agency must compensate the Treasury Forfeiture Fund for the Federal share and costs.

  2. If the requesting agency is unable to pay the costs of the Federal share, the property shall be sold and the proceeds equitably distributed. The Director, Warrants and Forfeitures may grant exceptions when:

    1. the property will be transferred to a state or local unit of government, or through such agency, to a private non-profit organization to support drug abuse treatment, drug and crime prevention and education, housing and job skills programs, or other community-based programs; or

    2. the requesting state or local agency lacks funds or authority to make such payments, and the forfeited property will fill a demonstrable need of the requesting agency

9.7.9.6.3  (08-13-2003)
Sharing in Joint Operations

  1. Federal law mandates that sharing in joint investigations reflects the degree of direct participation of the requesting agency in the law enforcement effort resulting in the forfeiture. Normally, this is determined by comparing the number of investigative hours expended by the requesting agencies. The hours worked include all hours worked by investigators or professional analysts and technicians through the completion of the forfeiture directly attributed to the forfeiture action. Secretarial and support staff time may not be used in an agency's determination of investigative hours. The final determination of sharing percentages will not be done until after the property has been forfeited and all of the participating agency's total contributions to the seizure/forfeiture have been determined.

  2. The following additional factors will be considered where the hours devoted do not adequately reflect the degree of participation of the requesting agency:

    1. Did the agency originate all of the information leading to the seizure?

    2. Did an agency provide unique and indispensible assistance?

    3. Could the state or local agency have achieved forfeiture under state law, but joined forces with the United States/CI to conduct a more effective investigation?

  3. For examples of situations that may apply to the questions listed above, refer to the Guide.

9.7.9.6.4  (08-13-2003)
Sharing in Task Force and Other Multi-Agency Investigations

  1. Many task forces involving Federal, state, and local law enforcement have pre-agreed equitable sharing arrangements based upon relative numbers of personnel and other contributions to the task force operation. These pre-agreed percentages will be honored when:

    1. the agreement is generally consistent with the Department of the Treasury equitable sharing policy

    2. the agreement is in writing

    3. the decision-maker is satisfied that the percentages agreed upon continue to reflect the true overall agency contributions to the task force

    4. the task force has a well defined subject area or organization target as its focus and, the specific seizures are part of the overall investigative function of the task force

  2. Refer to the Guide for more information regarding a formal chartered task force, multi-agency cases, and task force agreements.

9.7.9.6.5  (07-28-2015)
Sharing in Adoptive Seizures

  1. Sharing in adoptive seizures is prohibited.

9.7.9.6.6  (07-28-2015)
The Decision-Makers

  1. The authority to approve equitable sharing of assets forfeited in a single forfeiture proceeding where the appraised value of the assets is less than $1,000,000 has been delegated to the Director, Warrants and Forfeitures. Exceptions are those involving foreign sharing windfall situations or the transfer of real property, which requires approval from the Director, TEOAF.

  2. Where the forfeited assets are valued at $1,000,000 or more, and in all cases involving the transfer of real property, the Director, TEOAF, must approve the amount of the equitable share.

  3. The Assistant United States Attorney (AUSA) will be offered the opportunity for input before final sharing decisions are made when the forfeiture is a civil judicial or criminal forfeiture.

  4. All forfeiture cases involving foreign equitable sharing requests must be approved by the Director, TEOAF, and the Department of State.

9.7.9.7  (07-28-2015)
Disposition of Equitable Share

  1. To ensure agencies receiving equitable sharing from CI are properly thanked for their participation and to encourage future joint efforts, the SAC will send a letter to the receiving agency or make a formal presentation to the receiving agency, depending on the circumstances.

  2. If the SAC elects to personally present an equitable sharing check to the requesting agency official, the AFC should ensure the Disposition Instructions sent to TEOAF include in the additional comments section a request that the equitable sharing check(s) be sent to the AFC for presentation.

  3. The Treasury Executive Office for Asset Forfeiture (TEOAF) will notify the field office when equitable sharing payments are sent to the requesting agency(ies) electronically.

9.7.9.8  (08-13-2003)
Uses of Equitably Shared Property

  1. The Guide provides detailed guidance to requesting agency's permissible and impermissible uses of equitable shared property.

9.7.9.9  (07-28-2015)
Weed and Seed Initiative

  1. The Treasury Executive Office for Asset Forfeiture (TEOAF) Directive Number 9, Weed and Seed Initiative; Transfers of Real Property, describes the Weed and Seed Initiative and explains how federally forfeited real property may be transferred to state and local public agencies and private non-profit organizations for use in support of the Weed and Seed Initiative.

  2. Weed and Seed is an initiative designed to reclaim and rejuvenate embattled neighborhoods and communities. Weed and Seed uses a neighborhood focused two-part strategy to control violent crime and to provide social and economic support to communities where high crime rates and social ills are prevalent. The initiative first removes or "weeds" violent criminals and drug dealers from the neighborhoods. Second, the initiative prevents a reinfestation of criminal activity by "seeding" the neighborhoods with public and private-services, community-based policing, and incentives for new businesses.

  3. The requirements of the Weed and Seed Initiative are as follows:

    • A state or local law enforcement agency that contributed to an investigation that resulted in the forfeiture of real property may only request the property as a Weed and Seed asset sharing. The intent should be to use such property for Seed purposes or to transfer it to a public or private non-profit recipient for the same Seed purposes.

    • The ultimate non-profit recipient must be an appropriate non-profit organization, which agrees to use the property in compliance with the Weed and Seed Initiative. If the property ceases to be used for its intended purposes for a specified time period, the non-profit recipient agrees that title may revert to the United States.

    • Any state or local agency with a claim to an equitable share of the property must agree to waive any claims to sharing in the property or its proceeds in deference to the Weed and Seed request.

    • A Form TD F 92–22.46 must be submitted by the requesting state or local agency to CI identifying the property to be transferred to a non-profit organization pursuant to the Weed and Seed Initiative. Input from the Assistant United States Attorney is recommended.

    • All outstanding and future liens, taxes, repairs, maintenance, etc., must be paid by the recipient or other agency and may not be paid by the Treasury Forfeiture Fund.

    • Upon approval of the request by CI, the Weed and Seed request package must be submitted to TEOAF. This package should include, at a minimum, a letter from the requesting agency explaining the use for the property, waiver agreements from the other participants, and Equitable Sharing Decision Form, TD F 90–22.51 (Exhibit 9.7.9–4), and a letter or memorandum from CI requesting approval from the Director, TEOAF. The letter or memorandum should describe the request in detail and indicate whether the US Attorney's Office concurs with the request.

9.7.9.10  (08-13-2003)
Accounting for Cash, Proceeds, and Tangible Property

  1. All participating state and local law enforcement agencies must implement standard accounting procedures and internal controls to track equitably shared monies and tangible property in accordance with the general accounting procedures and compliance requirements contained in the Guide. Appendix D of the Guide contains sample bookkeeping procedures that will meet this requirement.

9.7.9.11  (07-28-2015)
Reporting Requirements

  1. Department of the Treasury policy requires that state and local law enforcement agencies submit the reports described in the following paragraphs to TEOAF at:
    Treasury Executive Office for Asset Forfeiture
    1341 G Street NW, 9th Floor
    Washington, DC 20220
    Fax: (202) 622–9610

  2. Federal Equitable Sharing Agreement -- As a prerequisite to participating in the Department of the Treasury Equitable Sharing Program, a state or local law enforcement agency must submit a signed Federal Equitable Sharing Agreement to TEOAF. The head of the law enforcement agency and a designated official of the governing body must sign this agreement, which is submitted every three years on or before October 1. Federal agencies are exempt from this requirement. A sample of this agreement is contained in Appendix C of the Guide.

  3. Federal Annual Certification Report -- State and local law enforcement agencies must also submit a Federal Annual Certification Report to TEOAF within 60 days following the close of the agency's fiscal year, which also must be signed by the head of the law enforcement agency and a designated official of the governing body. A sample of this agreement is contained in Appendix D of the Guide.

  4. Annual Audit -- Audits will be conducted as provided by the Single Audit Act Amendments of 1996 and OMB Circular A-133 Audits of States, Local Governments and Non-Profit Organizations.

9.7.9.12  (08-13-2003)
Non-Compliance

  1. Non-compliance with the policies of the Guide, including the failure to timely submit the Federal Equitable Sharing Agreement and Annual Certification Reports, may subject recipient agencies to sanctions.

  2. The sanctions include one or more of the following:

    1. Denial of an agency's sharing request

    2. Temporary or permanent disbarment from further participation in the sharing program

    3. Offsets from future sharing in amounts equal to un-allowed uses

    4. Civil enforcement actions in US District Court for breach of contract

    5. Federal criminal prosecution for false statements under 18 USC §1001 or fraud involving theft of Federal program funds under 18 USC §666, or other sections of the criminal code, as applicable

9.7.9.13  (08-13-2003)
Reverse Asset Sharing

  1. Criminal Investigation and other Treasury law enforcement agencies routinely participate in joint investigations where a DOJ law enforcement agency is the lead seizing agency. The lead seizing agency processes the seizure through forfeiture to disposition.

  2. In order for CI to receive its equitable share of the forfeited property resulting from its participation in the investigation, CI must file a Form DAG-71 with the DOJ law enforcement agency performing the seizure. This procedure is known as reverse asset sharing. Forms DAG-71 are available from the DOJ law enforcement agency.

  3. Like the Department of the Treasury, DOJ has an asset forfeiture fund into which forfeited cash and proceeds from the sale of property forfeited by a DOJ law enforcement agency are deposited. The DOJ Asset Forfeiture Fund serves essentially the same purposes and is subject to most of the same restrictions as the Treasury Forfeiture Fund. The DOJ Asset Forfeiture Fund policy allows a maximum asset sharing amount of 80 percent.

9.7.9.13.1  (07-28-2015)
Filing and Reporting Requirements

  1. The funds due the Treasury Forfeiture Fund from reverse asset sharing are important to the overall management and effectiveness of the fund. In order for the Treasury Forfeiture Fund to effectively monitor reverse asset sharing and achieve successful financial management of reverse asset sharing, TEOAF issued Directive Number 21, Policy for the Filing of DAG-71 for Reverse Asset Sharing.

  2. It is the responsibility of CI, and other Treasury law enforcement agencies, to file a request for an equitable share of forfeited property resulting from investigations in which CI participated with DOJ law enforcement agencies.

  3. Reverse asset sharing requests (Forms DAG-71) must be submitted to the DOJ seizing agency within 60 calendar days of the seizure. The 60-day rule can be waived only upon a written request provided to the DOJ seizing agency, stating the reasons for the late submission of the request and/or providing justification for the waiver. In those circumstances where CI's principal contribution occurs after the seizure, but during the period of time in which the forfeiture is being perfected, it would be appropriate to request a waiver to the 60-day rule or to amend a previous request. Failure to adhere to these rules may result in delayed or lost shares to the Treasury Forfeiture Fund.

  4. CI, and other Treasury law enforcement agencies, must report the filing of Forms DAG-71 within 60 days of the date of seizure by sending a copy of the Form DAG-71, by mail or facsimile, to:

    Reverse Asset Sharing Desk
    Treasury Executive Office for Asset Forfeiture
    1341 G Street NW, 9th Floor
    Washington, DC 20220
    Fax: (202) 622–9610

  5. The SAC must approve seizure investigative activities through CIMIS for any investigation where CI participates in the seizure and forfeiture activity with a DOJ law enforcement agency, and all reverse asset sharing requests must be reported on the Asset Forfeiture Tracking and Retrieval System (AFTRAK). See IRM 9.7.5, Forms, Processing, and Documentation.

  6. The AFC should use AFTRAK to monitor open reverse asset sharing requests. In some instances, the seizing agency may issue a letter notifying CI of the status of the sharing request. However, in most instances, no notification is received. It is the responsibility of the AFC to periodically obtain a status update by contacting the seizing agency.

  7. If CI is denied the ability to apply for equitable sharing by a DOJ law enforcement agency, or fails to receive an equitable share in return for their participation, the responsible Supervisory Special Agent (SSA) or SAC are encouraged to attempt resolution at the field office level. If resolution cannot be achieved, the issue should be forwarded to TEOAF, through the Warrants and Forfeitures Section, for resolution at the Treasury/Justice level.

9.7.9.13.2  (07-28-2015)
Receipt of Forfeited Property

  1. Tangible property received from a Federal agency through reverse asset sharing may be placed into official use in accordance with CI guidelines. Forfeited cash and proceeds from the sale of forfeited property must be deposited to the Treasury Forfeiture Fund.

  2. Reverse asset sharing checks must be forwarded immediately to TEOAF with a completed Form #6, Deposit Information (Exhibit 9.7.9-5), and a copy of the related Form(s) DAG-71.

9.7.9.14  (08-13-2003)
Reverse Asset Sharing with State, Local, or Foreign Agencies

  1. Federal agencies do not have the authority to accept equitable shares of property or tangible items from state, local, or foreign law enforcement agencies. Such shares have to be treated as gifts to the Federal government and permission to accept the gift must be sought from Treasury's Assistant Secretary (Management) before accepting any such property.

Exhibit 9.7.9-1 
Memorandum-Request for Transfer of Property Seized/Forfeited by a Treasury Agency

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
     
Criminal Investigation
     
MEMORANDUM FOR DIRECTOR
WARRANTS AND FORFEITURE SECTION CI:OPS:WF
CRIMINAL INVESTIGATION
FROM: SAC Full Name
Special Agent in Charge
Field Office Name Field Office symbols
Criminal Investigation
SUBJECT: Equitable Sharing Request
     
  In accordance with Section VIII of the Department of the Treasury's Guide to Equitable Sharing, attached herewith is/are the Request(s) for Transfer of Property Seized/Forfeited by a Treasury Agency submitted by Name of Agency.
  Attached also is/are the respective Equitable Sharing Decision Form(s) and Evaluation Report(s) prepared by the XXXXX Field Office.
  If you or members of your staff have any questions, please contact AFC's Name Asset Forfeiture Coordinator, at Telephone Number or AFS's Name, Field Office, Asset Forfeiture Specialist at Telephone Number.
  Attachments:
  cc:

Exhibit 9.7.9-2 
Memorandum-Request for Transfer of Property Valued at More Than $25,000

DEPARTMENT OF THE TREASURY
INTERNAL REVENUE SERVICE
WASHINGTON, D.C. 20224
     
Criminal Investigation
     
MEMORANDUM FOR DIRECTOR
TREASURY EXECUTIVE OFFICE FOR ASSET FORFEITURE
THRU: Director
Warrants and Forfeiture Section CI:OPS:WF
Criminal Investigation
FROM: SAC Full Name
Special Agent in Charge
Field Office name Field Office symbols
Criminal Investigation
  SUBJECT: Equitable Sharing Request
     
  In accordance with Section VIII of the Department of the Treasury's Guide to Equitable Sharing, attached herewith is/are the Request(s) for Transfer of Property Seized/Forfeited by a Treasury Agency submitted by Name of Agency.
  Attached also is/are the respective Equitable Sharing Decision Form(s) and Evaluation Report(s) prepared by the XXXXX Field Office.
  If you or members of your staff have any questions, please contact AFC's Name Asset Forfeiture Coordinator, at Telephone Number or AFS's Name, Field Office, Asset Forfeiture Specialist at Telephone Number.
  Attachments:
  cc:

Exhibit 9.7.9-3 
Form TD F 92–22.46 and Supplemental Instructions, Request for Transfer of Property Seized/Forfeited by a Treasury Agency

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Request for Property Seized/Forfeited
by a Treasury Agency
Instructions for Completing Treasury Form 92-22.46
 
General Instructions
Transfer of property seized/forfeited by a Treasury agency is governed by the Secretary of the Treasury's Guidelines in Seized and Forfeited Property and the Department of the Treasury, Guide to Equitable Sharing for Foreign Countries and Federal, State, and Local Law Enforcement Agencies.
The requesting federal, state, or local law enforcement agency head or designee must complete the TD 92-22.46. (Note: Incomplete or inaccurate information is the most common cause of delay in processing.)
For the international transfer of property forfeited by a Treasury agency, contact the Asset Sharing Coordinator, Treasury Executive Office for Asset Forfeiture, Department of Treasury, Washington, D.C.
A separate TD F 92-22.46 must be completed for each seizure, unless the investigation or enforcement action resulted in multiple seizures, then one TD F 92-22.46 may be filed with a listing of the seizures.
The deadline for submitting the TD F 92.22-46 to the Treasury investigative agency processing the seizure/forfeiture is 60 days from the date of seizure. Only in extraordinary circumstances will a TD F 92.22.46 be considered if submitted after the deadline.
In some instances the Agency must return costs and the appropriate Treasury agency equitable share to the Treasury Forfeiture Fund. If the Agency is unable to return the costs and Treasury share, the property will be liquidated and the proceeds distributed proportionally. (Upon adequate justification exceptions may be granted by the deciding official.)
Instructions
Part I: For Treasury use only.
Part II: Provide the agency's name, address and NCIC code. If the NCIC code is not known, contact the Treasury investigative agency responsible for processing this forfeiture. The contact person is the person who has authority to accept property and transfer documents, and/or money.
Part III: Provide as complete a property description as possible. Include serial or vehicle identification number. You must check either "Item " (if requesting an asset) or "Cash/Proceeds" (if requesting a percentage of the asset). Attach a list of any other asset(s) seized in this case.
  If "Cash/Proceeds" is requested, provide the percentage of the net proceeds requested by the agency. The percentage requested must be based on the degree of direct or indirect law enforcement effort by the federal, state or local agency resulting in the seizure forfeiture, taking into account the total value of all property forfeited and total law enforcement effort, including any related criminal prosecution with respect to the violation of law on which the forfeiture is based.
Part IV: Indicate the specific intended law enforcement purpose(s) for the requested cash, proceeds or tangible property. Pursuant to the Guidelines, all property, including cash and proceeds, must be used for the specific law enforcement purpose(s) approved.
Part V: Answer all items A-F. If an answer to A through E is yes, provide details in Block VI.
Part VI: Space for additional information.
Part VII: Agency head or his designee and appropriate legal office must certify that information provided in Blocks I-VI is true and accurate.

Exhibit 9.7.9-4 
Form TD F 90-22.51, Equitable Sharing Form

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Exhibit 9.7.9-5 
Form #6, Deposit Information

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