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Title 26 — Internal Revenue CodeRelease 119-73not60

§7325 Personal Property Valued at $100,000 or Less

Title 26 › Subtitle Subtitle F— Procedure and Administration › Chapter 75— CRIMES, OTHER OFFENSES, AND FORFEITURES › Subchapter C— Forfeitures › Part II— PROVISIONS COMMON TO FORFEITURES › § 7325

Last updated Apr 5, 2026|Official source

Summary

When the Secretary decides that seized goods are worth $100,000 or less, the Secretary must make two copies of a detailed list and have three sworn, impartial appraisers from that tax district value the items. The appraisers and the Secretary must sign the list, and the appraisers are paid for their work. If the appraisers value the items at $100,000 or less, the Secretary must run a notice in a local newspaper for 3 weeks describing the items and telling people to claim them within 30 days of the first notice. Anyone claiming the items can file a claim and give a $2,500 bond promising to pay costs if the items are later forfeited; the Secretary then sends the papers to the U.S. attorney to handle the case. If no claim or bond is filed in time, the Secretary must give notice of a sale and sell the items at public auction or by competitive bids under the Secretary’s rules.

Full Legal Text

Title 26, §7325

Internal Revenue Code — Source: USLM XML via OLRC

In all cases of seizure of any goods, wares, or merchandise as being subject to forfeiture under any provision of this title which, in the opinion of the Secretary, are of the appraised value of $100,000 or less, the Secretary shall, except in cases otherwise provided, proceed as follows:
(1)The Secretary shall cause a list containing a particular description of the goods, wares, or merchandise seized to be prepared in duplicate, and an appraisement thereof to be made by three sworn appraisers, to be selected by the Secretary who shall be respectable and disinterested citizens of the United States residing within the internal revenue district wherein the seizure was made. Such list and appraisement shall be properly attested by the Secretary and such appraisers. Each appraiser shall be allowed for his services such compensation as the Secretary shall by regulations prescribe, to be paid in the manner similar to that provided for other necessary charges incurred in collecting internal revenue.
(2)If such goods are found by such appraisers to be of the value of $100,000 or less, the Secretary shall publish a notice for 3 weeks, in some newspaper of the district where the seizure was made, describing the articles and stating the time, place, and cause of their seizure, and requiring any person claiming them to appear and make such claim within 30 days from the date of the first publication of such notice.
(3)Any person claiming the goods, wares, or merchandise so seized, within the time specified in the notice, may file with the Secretary a claim, stating his interest in the articles seized, and may execute a bond to the United States in the penal sum of $2,500, conditioned that, in case of condemnation of the articles so seized, the obligors shall pay all the costs and expenses of the proceedings to obtain such condemnation; and upon the delivery of such bond to the Secretary, he shall transmit the same, with the duplicate list or description of the goods seized, to the United States attorney for the district, and such attorney shall proceed thereon in the ordinary manner prescribed by law.
(4)If no claim is interposed and no bond is given within the time above specified, the Secretary shall give reasonable notice of the sale of the goods, wares, or merchandise by publication, and, at the time and place specified in the notice, shall, unless otherwise provided by law, sell the articles so seized at public auction, or upon competitive bids, in accordance with such regulations as may be prescribed by the Secretary.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1986—Pub. L. 99–514 substituted “$100,000” for “$2,500” in section catchline, introductory provisions, and par. (2), and substituted “$2,500” for “$250” in par. (3). 1976—Pub. L. 94–455 struck out “or his delegate” after “Secretary” wherever appearing. 1958—Pub. L. 85–866 struck out “district” before “attorney” in par. (3). Pub. L. 85–859 substituted “$2,500” for “$1,000” in section catchline, opening par., and par. (2), and inserted “, unless otherwise provided by law,” before “sell the articles” in par. (4).

Statutory Notes and Related Subsidiaries

Effective Date

of 1986 Amendment Pub. L. 99–514, title XV, § 1566(e), Oct. 22, 1986, 100 Stat. 2763, provided that: “The

Amendments

made by this section [amending this section and section 7103 of this title] shall take effect on the date of the enactment of this Act [Oct. 22, 1986].”

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. § 7325

Title 26 — Internal Revenue Code

Last Updated

Apr 5, 2026

Release point: 119-73not60