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Title 26 — Internal Revenue CodeRelease 119-73

§7324 Special Disposition of Perishable Goods

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

Last updated Apr 6, 2026|Official source

Summary

When the government seizes property under the tax forfeiture laws and the property is likely to spoil, lose value, or cost too much to store, the owner or the U.S. marshal can ask the Treasury Secretary to examine it. If a sale is needed to prevent waste or expense, the Secretary appraises the property. The owner can get it back by posting a bond equal to the appraised value to cover whatever the court finally orders. If the owner refuses, the property is sold at public sale and the proceeds, minus the costs of seizure and sale, are held by the court until the case ends.

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)The owner thereof, or the United States marshal of the district, may apply to the Secretary to examine it; and
(2)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)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)(A)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)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)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)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

Apr 6, 2026

Release point: 119-73