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Title 26 — Internal Revenue CodeRelease 119-73

§7301 Property Subject to Tax

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 75— CRIMES, OTHER OFFENSES, AND FORFEITURES › Subchapter C— Forfeitures › Part I— PROPERTY SUBJECT TO FORFEITURE › § 7301

Last updated Apr 6, 2026|Official source

Summary

The government can seize and keep property tied to tax fraud. If goods that owe a federal tax are being hidden, moved, or held for sale to dodge that tax, they can be taken and forfeited to the United States. The same goes for raw materials someone plans to turn into taxable goods to sell in fraud of the tax laws. The reach is broad. Anything else in the same building, yard, or enclosure where the fraudulent goods are found can be seized too. So can containers that hold or once held the goods, and any vehicles, aircraft, vessels, or even draft animals used to move or hide them.

Full Legal Text

Title 26, §7301

Internal Revenue Code — Source: USLM XML via OLRC

(a)Any property on which, or for or in respect whereof, any tax is imposed by this title which shall be found in the possession or custody or within the control of any person, for the purpose of being sold or removed by him in fraud of the internal revenue laws, or with design to avoid payment of such tax, or which is removed, deposited, or concealed, with intent to defraud the United States of such tax or any part thereof, may be seized, and shall be forfeited to the United States.
(b)All property found in the possession of any person intending to manufacture the same into property of a kind subject to tax for the purpose of selling such taxable property in fraud of the internal revenue laws, or with design to evade the payment of such tax, may also be seized, and shall be forfeited to the United States.
(c)All property whatsoever, in the place or building, or any yard or enclosure, where the property described in subsection (a) or (b) is found, or which is intended to be used in the making of property described in subsection (a), with intent to defraud the United States of tax or any part thereof, on the property described in subsection (a) may also be seized, and shall be forfeited to the United States.
(d)All property used as a container for, or which shall have contained, property described in subsection (a) or (b) may also be seized, and shall be forfeited to the United States.
(e)Any property (including aircraft, vehicles, vessels, or draft animals) used to transport or for the deposit or concealment of property described in subsection (a) or (b), or any property used to transport or for the deposit or concealment of property which is intended to be used in the making or packaging of property described in subsection (a), may also be seized, and shall be forfeited to the United States.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1958—Subsec. (e). Pub. L. 85–859 included property used to transport or for the deposit or concealment of property which is intended to be used in the making or packaging of property described in subsec. (a).

Statutory Notes and Related Subsidiaries

Effective Date

of 1958 AmendmentAmendment by Pub. L. 85–859 effective Sept. 3, 1958, see section 210(a)(1) of Pub. L. 85–859, set out as an

Effective Date

note under section 5001 of this title.

Reference

Citations & Metadata

Citation

26 U.S.C. § 7301

Title 26 — Internal Revenue Code

Last Updated

Apr 6, 2026

Release point: 119-73