Headquarters concurrence is required before real property and businesses are seized by CI and transferred to the seized property contractor. For specific procedures to obtain HQ approval to seize real property and businesses, see IRM 9.7.4, Pre-Seizure Planning.

The seized property contractor will be provided the following documents from CI before transfer of custody of a real property seizure:

Upon transfer of custody of a real property seizure to the seized property contractor, the AFC will specify, in writing, the type and extent of initial property management services desired. The seized property contractor may be tasked by the AFC to perform services that may include, but are not limited to, the following:

Unless otherwise specified at the time of transfer, the seized property contractor will videotape the property and contents with both interior and exterior views. The seized property contractor will take photographs of damaged real property and will submit photographs along with the estimate for repairs to the AFC.

For pre-seizure planning and cost benefit analyses, the seized property contractor will conduct internet appraisals to determine the approximate value of real property. When a full appraisal is required, the seized property contractor will use licensed real estate appraisers. These appraisals must be consistent with the published standards of the American Institute of Real Estate Appraisers and the Society of Real Estate Appraisers.

The seized property contractor will use a licensed real estate title company or attorney to provide a title search and report on specified parcels of real property.

Security requirements, alarm systems, and security guards, where appropriate, will be coordinated with and authorized by the AFC.

Unless enforcement requirements mandate otherwise, before the transfer of custody of real property that includes ongoing commercial businesses or other enterprises, the seized property contractor will perform a written analysis and evaluation to determine the cost and feasibility of continuing to operate the business. The seized property contractor will also determine any environmental or other problems that could make seizure inadvisable or cost prohibitive.

Occupancy issues are a concern in civil judicial and criminal forfeiture actions involving real property.

Except as provided in 18 USC §985, real property that is the subject of a civil judicial forfeiture action shall not be seized or custody transferred to the seized property contractor before entry of an order of forfeiture. The owner or occupants of the real property shall not be evicted from, or otherwise deprived of the use and enjoyment of, real property that is the subject of a pending forfeiture action. The filing of a lis pendens and the execution of a writ of entry for the purpose of conducting an inspection and inventory of the property shall not be considered a seizure.

If real property is occupied and not vacated upon entry of an order of forfeiture, CI may either enter into a Post Forfeiture Occupancy Agreement (Exhibit 9.7.6–3) or consult with the AUSA responsible for the forfeiture regarding eviction. During the time that the occupant(s) have possession of the property, the occupant(s) will maintain insurance on the dwelling(s) and show proof of insurance to the AFC upon request. The occupant(s) and the Special Agent in Charge (SAC) will sign the agreement.

Real property subject to forfeiture in a criminal forfeiture action will not be seized or custody transferred to the seized property contractor, absent unusual circumstances, until the court enters a preliminary order of forfeiture. After the preliminary order of forfeiture is entered, and prior to a final order of forfeiture in a criminal forfeiture action, occupants of real property may be permitted to remain on the property pending the forfeiture. If the real property is occupied, CI will enter into an Occupancy Agreement (see Exhibit 9.7.6-4). Both the occupant(s) and the SAC will sign this agreement. The occupancy agreement in Exhibit 9.7.6-4 was developed by and issued as an attachment with EOAF Directive Number 13, Occupancy Agreements, and includes various restrictions that address Department of the Treasury concerns. The language of this document is intended to take the agreement out of the realm of state landlord/tenant law and establishes that the agreement is a license, rather than a lease. This enhances the government's position in evicting occupants if necessary. During the time the occupant(s) reside in the property, the occupant(s) will maintain insurance on the dwellings and show proof of insurance to the AFC upon request.

Upon entry of an order of forfeiture in a civil judicial forfeiture action or final order of forfeiture in a criminal action, and assurance that no stay of the order has been issued as part of an appeal, the AFC will deliver, by personal service or by certified mail, return receipt requested, a letter to the occupant(s) of forfeited real property (see Exhibit 9.7.6-5, Eviction Letter). This letter will advise the occupant(s) that the property has been forfeited, that the occupant and all personal property must be vacated by a specific date, and that any personal property left on the premises will be considered abandoned property, without value, and will be disposed of according to law.

If the occupant refuses to vacate the premises, the AFC and/or investigating agent will consult with the AUSA responsible for the forfeiture in the event an eviction is necessary.

The seized property contractor will maintain vacant and occupied real estate and obtain suitable tenants and manage rental properties as provided in written instructions from the AFC.

The seized property contractor will perform all maintenance, ordinary repairs, and replacements necessary to preserve the property in its condition at the time of acceptance in accordance with the threshold levels in the SOW. The seized property contractor is authorized to perform emergency repairs in accordance with the threshold levels in the SOW.

The seized property contractor will ensure that all repairs or alterations meet all local building codes, zoning ordinances, and other ordinances as required in the jurisdiction where the property is located.

The seized property contractor will obtain rental tenants subject to terms and periods of time specified by the AFC. The seized property contractor will ensure that lease provisions and rental practices conform to those in common use in the community unless otherwise specified by the AFC.

The seized property contractor will ensure that parties renting the premises agree to conditions of tenancy, including prearranging visits by CI and possible month-to-month rental conditions.

The seized property contractor will prepare the premises for rent by cleaning and taking other necessary property maintenance actions.

The seized property contractor strictly controls access to property, permitting access only to authorized seized property contractor representatives, pre-designated CI contacts, and those individuals who present a Disposition Order signed by an AFC. Pre-designated CI contact, authorized in writing to be granted unlimited access to seized property (no Disposition Order required) and seized property contractor personnel are required to provide identification before access to property is granted. Court orders must be accompanied by Disposition Orders. The seized property contractor will contact the AFC for instructions when individuals without a Disposition Order request access to property. Authorized vendor and subcontractor personnel will accompany the visiting party at all times to assure security of property.

The seized property contractor, subcontractors, and/or vendors will not release any information about seized property to anyone other than the United States Custom and Border Patrol until the disposition order for remission or other disposition is issued. All requests for information will be referred to the affected AFC.

To fulfill maintenance requirements, the seized property contractor will employ cost-effective maintenance procedures.

The seized property contractor will perform initial maintenance that will consist of checking fluid levels, tire inflation, cleaning of interior and exterior, and other routine initial maintenance for the preliminary protection of the conveyance pending preparation and implementation of a more comprehensive preservation and maintenance plan. The initial maintenance cost will not exceed the amount specified in the SOW without the consent of the AFC.

The seized property contractor will prepare a preservation and maintenance plan for each consigned conveyance within the time frame specified in the SOW. This plan will include repairs needed, as well as preventive maintenance, showing material and labor costs, and frequency of maintenance.

The seized property contractor will implement periodic maintenance as specified in the SOW or directed by the AFC.

The seized property contractor will perform necessary initial maintenance on seized property such as rugs, furs, perishables, etc. in order to preserve them in the same condition as at the time of acceptance. These types of seized property may require follow-up maintenance to be implemented as specified in the SOW or directed by the AFC.

The seized property contractor is authorized to perform whatever repairs are necessary to ensure that seized property (primarily conveyances) is satisfactorily transported and stored in accordance with the threshold levels in the SOW.

For property to be sold, the seized property contractor will give consideration to and make recommendations to the AFC for approval regarding the cosmetic or functional repair, refurbishment, rehabilitation, or modification of forfeited property when such action would enhance its value over and above the cost to accomplish any such action. Any expenditure will not exceed the amount specified in the SOW without the approval of the Contracting Officer.

The seized property contractor will provide the AFC and the Director, EOAF, with copies of all litigation documents and court orders immediately upon receipt, but no later than specified in the SOW.

The purpose of this requirement is to keep the government fully informed and enable it to respond in a timely manner to potential notice, litigation, and other issues. Timely notification or lack thereof may be used as a measure of the seized property contractor’s performance.

The seized property contractor is responsible for detecting, identifying, and managing hazardous materials according to any Federal, state, and local laws, codes, ordinances, and regulations that apply to environmental quality standards in each community where seized property is maintained or destroyed.

For additional information regarding seized property that is potentially contaminated or contaminated with hazardous materials, see IRM 9.7.4, Pre-Seizure Planning.

The seized property contractor will inform the AFC of an adverse incident, which includes any loss, destruction, and/or damage to seized property. The seized property contractor is required to submit a written final report of investigation of an adverse incident to the Director, Warrants and Forfeiture (CI:OPS:WF).

Criminal Investigation policy mandates that domestic and foreign currency seized for forfeiture, except where it is to be used as evidence or held as a "collectible asset" must be expeditiously counted, processed, and deposited into the Suspense Account within 5 days of seizure. The use of safe deposit boxes or other secure methods of temporarily storing seized currency is acceptable when necessary.

Refer to IRM 9.7.12, Evidence Seizures, for the required procedures to obtain the appropriate approvals to hold seized currency as evidence.

Seized currency will be transported with appropriate security measures to ensure safe transportation to the physical site of deposit. The CI contact will remain at the site until the currency is recounted, if necessary, by the financial facility and a proper receipt is provided for the deposit.

Proceeds from seized financial accounts, including checking, savings, money market, mutual funds, and brokerage accounts, will be deposited into the Suspense Account unless they are "frozen" .

Because the value of financial instruments can be lost or diminished if proper procedures are not followed, EOAF issued Directive Number 2, Seizures of Financial Instruments. The following financial instruments seized for forfeiture are to be handled in accordance with the procedures in Directive Number 2:

Fed Wire or Electronic Funds Transfers can be accomplished by using a commercial bank to wire transfer seized funds into the Suspense Account.

Most banks require an established account with the bank from which wire transfers will be drawn. Since there is latitude on the part of commercial banks in their handling of wire transfers, it may be necessary for CI contact to develop a business relationship with a bank in their geographical area and to process wire transfers in accordance with their protocols and requirements.

Banks also charge a fee for the wire transfer. This fee cannot be deducted from the seized funds being transferred. Each field office will implement procedures to provide for the payment of the wire transfer fee incurred.

Some banks may allow the wire transfer of funds without the sender having an account with the bank. The field office may wish to negotiate an agreement to have such a bank process wire transfers without establishing an account.

There is no standardized format or form in the banking industry for the processing of wire transfers. The information generally required to send wire transfers to the Suspense Account is contained in EOAF Directive Number 4 and Exhibit 9.7.6-6.

On-line Payments and Collections (OPAC) is an electronic transfer program that uses the Government On-line Accounting Link System to transfer monies inter-agency. The EOAF Directive Number 4 presents OPAC deposit/transfer instructions.

Whenever a wire transfer or direct deposit is made into the Suspense Account, a copy of the EOAF Form #6, Deposit Information Form (see Exhibit 9.7.6-7), must be sent by fax to the National Finance Center (NFC) on the day the wire transfer is executed or the day the direct deposit is made. The fax number for the NFC is printed on the Form #6. A copy of the Form #6 along with the wire transfer or direct deposit receipt should be forwarded to the HQ-W&F mailbox, as soon as it is received.

If one of the methods described above cannot be used to deposit/transfer seized funds into the Suspense Account, the seized funds may be delivered, in the form of a cashier's check or other negotiable instrument made payable to the Department of the Treasury, to the Warrants and Forfeiture Section (CI:OPS:WF) for delivery to EOAF for deposit into the Suspense Account.

The seized funds can be delivered in person or mailed to the:
IRS-CI
Internal Revenue Service Criminal Investigation
Warrants & Forfeiture
CI:OPS:WF - Room 2541
1111 Constitution Ave, NW
Washington, DC 20224
202-622-5249

A properly completed Form #6, Deposit Information Form, must be included with the check or other negotiable instrument.