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Title 26, Internal Revenue CodeRelease 119-110

§7324 Special Disposition of Perishable Goods

Title 26 › Subtitle F — Procedure and Administration › CHAPTER 75 — CRIMES, OTHER OFFENSES, AND FORFEITURES › Subchapter C — Forfeitures › PART II — PROVISIONS COMMON TO FORFEITURES › § 7324

Last updated Sep 22, 2026|Official source

Summary

When property seized under section 7301 or 7302 may spoil, lose a lot of value, or cost too much to keep, the owner or the U.S. marshal can ask the Secretary to inspect it. If the Secretary decides it should be sold, the Secretary sets an appraised value. The owner can get the property back by posting a bond equal to that appraisal. The bond must follow the court’s final decision and is filed with the U.S. attorney where in‑rem proceedings under section 7323 may start. If no bond is posted, a Treasury officer, employee, or the marshal will sell the property publicly under the Secretary’s rules. After paying reasonable seizure and sale costs, the proceeds are held by the court until its final order. Rules about bond form and sureties are in section 7101.

Full Legal Text

Title 26, §7324

Internal Revenue Code, Source: USLM XML via OLRC

When any property which is seized under the provisions of section 7301 or section 7302 is liable to perish or become greatly reduced in price or value by keeping, or when it cannot be kept without great expense—
(1)Application for examination
The owner thereof, or the United States marshal of the district, may apply to the Secretary to examine it; and
(2)Appraisal
If, in the opinion of the Secretary, it shall be necessary that such property should be sold to prevent such waste or expense, the Secretary shall appraise the same; and thereupon
(3)Return to owner under bond
The owner shall have such property returned to him upon giving bond in an amount equal to such appraised value to abide the final order, decree, or judgment of the court having cognizance of the case, and to pay the amount of said appraised value to the Secretary, the United States marshal, or otherwise, as may be ordered and directed by the court, which bond shall be filed by the Secretary with the United States attorney for the district in which the proceedings in rem authorized in section 7323 may be commenced.
(4)Sale in absence of bond
(A)Order to sell
If such owner shall neglect or refuse to give such bond, the Secretary shall issue to any Treasury officer or employee or to the United States marshal an order to sell the same.
(B)Manner of sale
Such Treasury officer or employee or the marshal shall as soon as practicable make public sale of such property in accordance with such regulations as may be prescribed by the Secretary.
(C)Disposition of proceeds
The proceeds of the sale, after deducting the reasonable costs of the seizure and sale, shall be paid to the court to abide its final order, decree, or judgment.
(5)Form of bond and sureties
For provisions relating to form and sureties on bonds, see section 7101.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1976—Pars. (1) to (4). Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1958—Par. (3). Pub. L. 85–866 struck out “district” before “attorney”. Pub. L. 85–859 included property seized under section 7302 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

of 1958

Amendments

Amendment by Pub. L. 85–866 effective Aug. 17, 1954, see section 1(c)(2) of Pub. L. 85–866, set out as a note under section 165 of this title. Amendment 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. § 7324

Title 26, Internal Revenue Code

Last Updated

Sep 22, 2026

Release point: 119-110