7 August 2001

See contents of full IRS Handbook of Criminal Investigation: http://cryptome.org/irs-ci/irs-ci.htm

## Handbook 9.7 Asset Seizure and Forfeiture Chapter 12 Equitable Sharing and Reverse Asset Sharing
### Contents [9.7] 12.1 OVERVIEW [9.7] 12.2 WHEN EQUITABLE SHARING OCCURS [9.7] 12.3 AGENCIES ELIGIBLE TO RECEIVE EQUITABLE SHARING [9.7] 12.4 AGENCIES NOT ELIGIBLE TO RECEIVE EQUITABLE SHARING [9.7] 12.5 ASSETS NOT SUBJECT TO EQUITABLE SHARING [9.7] 12.6 WAYS TO PARTICIPATE IN THE TREASURY EQUITABLE SHARING [9.7] 12.6.1 Direct or Indirect Participation [9.7] 12.6.2 Adoption of a Federal, State, Local or Foreign Seizure [9.7] 12.7 PREPARATION OF EQUITABLE SHARING REQUESTS [9.7] 12.8 DETERMINING EQUITABLE SHARING PERCENTAGE OF NET PROCEEDS [9.7] 12.8.1 Additional Factors to Justify Sharing Percentages [9.7] 12.8.2 Treasury Forfeiture Share [9.7] 12.8.3 Single Assets and Equitable Sharing [9.7] 12.8.4 Sharing in Task Force and other Multi-Agency Investigations [9.7] 12.9 DECISION MAKERS FOR EQUITABLE SHARING REQUESTS [9.7] 12.10 DISPOSITION OF EQUITABLE SHARE [9.7] 12.11 OBTAINING SHARING CHECK FOR PRESENTATION [9.7] 12.12 USES OF EQUITABLE SHARED PROPERTY BY REQUESTING AGENCIES [9.7] 12.13 PREPARATION OF REVERSE ASSET SHARING REQUESTS Exhibit [9.7] 12-1 Sample TDF 92-22.46, Request For Equitable Sharing Exhibit [9.7] 12-2 Checklist For Handling Equitable Sharing Request Exhibit [9.7] 12-3 Equitable Sharing Decision Form Exhibit [9.7] 12-4 Evaluation Report For Sharing Requests Exhibit [9.7] 12-5 Transmittal of Equitable Sharing Request Exhibit [9.7] 12-6 Notification of Equitable Sharing Decision Letter Exhibit [9.7] 12-7 Sample Form DAG-71, Application For Transfer of Federally Forfeited Property
### [9.7] 12.1 (04-30-1998) OVERVIEW
On October 1, 1993, Internal Revenue Service (IRS) became a participant of the Department of Treasury Forfeiture Fund. The following information is a summary of the contents of the Department of Treasury Guide to Equitable Sharing for Foreign Countries and Federal, State, or Local Law Enforcement Agencies prepared by Treasury Executive Office Asset Forfeiture (TEOAF). The following sections are included in this chapter: When Equitable Sharing Occurs Agencies Eligible To Receive Equitable Sharing Agencies Not Eligible To Receive Equitable Sharing Assets Not Subject To Equitable Sharing Ways To Participate In The Treasury Equitable Sharing Preparation Of Equitable Sharing Requests Determining Equitable Sharing Percentage Of Net Proceeds Decision Makers To Equitable Sharing Requests Disposition Of Equitable Share Obtaining Sharing Check For Presentation Uses Of Equitable Shared Property By Requesting Agencies Preparation Of Reverse Asset Sharing Requests
### [9.7] 12.2 (04-30-1998) WHEN EQUITABLE SHARING OCCURS
Equitable sharing can only occur after the federal forfeiture has been completed, the United States has taken clear title to the property, and a final sharing decision has been made by the appropriate Treasury official. Where a claimant has filed a Claim and Cost Bond or a petition for remission or mitigation of the forfeiture, sharing must be delayed until resolution of the claim or petition. If the forfeiture involves property which must be sold, sharing cannot occur until the sale is complete and the net proceeds of the sale determined.
### [9.7] 12.3 (04-30-1998) AGENCIES ELIGIBLE TO RECEIVE EQUITABLE SHARING
Any federal, state, or local law enforcement agency, as well as any foreign country, that directly or indirectly participated in an investigation or prosecution resulting in a federal forfeiture by IRS may request an equitable share of forfeited property, or the net proceeds of forfeited property. See the section below for exceptions to this statement. Equitable sharing is also available to state and local prosecutorial agencies that provide direct assistance which results in the forfeiture of assets. In unusual circumstances, equitable sharing is also available to other federal agencies that did not participate in the acts that led to a seizure or forfeiture.
### [9.7] 12.4 (04-30-1998) AGENCIES NOT ELIGIBLE TO RECEIVE EQUITABLE SHARING
If the forfeiture is perfected by IRS, another Treasury agency cannot apply for an equitable share of the proceeds unless the request is for tangible or real property, excluding monetary instruments (as defined in Title 31 USC 5312, including currency, traveler's checks, bearer negotiable instruments, securities, and other commercial paper). Only federal law enforcement agencies with a forfeiture fund (the U.S. Postal Service and all Justice agencies, FBI, DEA, INS, U.S. Park Police, the Food and Drug Administration, Health and Human Services Inspector General, and the Bureau of Prisons) can share in net proceeds of forfeited property. This prohibition does not apply to tangible assets (such as vehicles), which can be shared with any federal law enforcement agency. U.S. Attorney offices are not eligible to receive Treasury equitable sharing.
### [9.7] 12.5 (04-30-1998) ASSETS NOT SUBJECT TO EQUITABLE SHARING
Abandoned property cannot be shared with federal, state or local law enforcement agencies, or a foreign country. However, these agencies can apply for the property through GSA regulations (41 C.F.R.101-48). Assets seized for forfeiture under Title 26 (code forfeitures) are not subject to equitable sharing.
### [9.7] 12.6 (04-30-1998) WAYS TO PARTICIPATE IN THE TREASURY EQUITABLE SHARING
Agencies may participate in equitable sharing through direct or indirect participation in the investigation. They may also participate when they request the IRS to adopt property they have seized.
### [9.7] 12.6.1 (04-30-1998) Direct or Indirect Participation
Most sharing results from joint investigations in which the IRS works with federal, state or local law enforcement agencies, or foreign countries, to enforce federal laws.
### [9.7] 12.6.2 (04-30-1998) Adoption of a Federal, State, Local or Foreign Seizure
A federal, state or local law enforcement agency, or foreign country, that has seized property may request the IRS to adopt the seizure and proceed with the forfeiture of the property. IRS may adopt such seized property for forfeiture where the conduct giving rise to the seizure is in violation of a federal statute enforced by CI and which is a basis for forfeiture pursuant to Title 18 USC 981 or 982. The request for the adoption must be made within 30 days from the date the property was originally seized. The proposed adoption may be effected after preapproval by District Counsel. The adopted seizure is perfected by obtaining a federal seizure warrant or by the property being identified for forfeiture in a criminal indictment. IRS will not seize (take custody of) the property until the seizure warrant is executed (civil forfeiture) or the defendant is convicted and the property ordered forfeited (criminal forfeiture) in state, local, or foreign adoptions. Unless Service guidelines are waived to serve a compelling law enforcement purpose, property will not be adopted for seizure unless the property meets the following minimum equity guidelines and those set forth in LEM IX.
Conveyances
| Vehicles | $5,000
| Vessels | $10,000
| Aircraft | $10,000
Real Property | --Land and improvements
|  | $20,000 or 20 percent of the appraised value, whichever is greater
All Other Property | --Currency, Bank accounts, | monetary instruments, jewelry, etc.
|  | $2,000
Note: These minimum net equity requirements are higher than the stated minimum thresholds appearing in the Department of the Treasury, Executive Office for Asset Forfeiture, "Guide to Equitable Sharing for Foreign Countries and Federal, State, and Local Law Enforcement Agencies," dated October 1, 1996.
### [9.7] 12.7 (04-30-1998) PREPARATION OF EQUITABLE SHARING REQUESTS
Agencies, including state and local prosecutorial offices, may request a share of the property by submitting a Treasury Form TDF 92-22.46, Request for the Equitable Sharing of Federally Forfeited Property (Exhibit 12-1) to the district Asset Forfeiture Coordinator (AFC). Exhibit 12-2 is a checklist to be used when handling equitable sharing requests. A foreign country may request a share of forfeited property from IRS by contacting the United States Ambassador or Customs Attache via a letter of request. The embassy should forward the letter to IRS (CI) Headquarters, Asset Forfeiture and Narcotics Section, which will forward a copy to the district AFC handling the seizure for initial evaluation. A sharing request cannot be considered unless it is submitted within 60 calendar days of the effective seizure date. The 60-day rule can be waived based upon a written request to the district AFC (IRS, CI, Headquarters, Asset Forfeiture and Narcotics Section in the case of a foreign country request) stating the reasons for the late submission of the equitable sharing request and providing specific justification for the waiver. The waiver should be attached to the sharing request, Form TDF 92-22.46. Waivers submitted by a federal, state, or local law enforcement agency are approved by the Chief, CI, of the seizing district. Waivers submitted by a foreign country are approved by the Assistant Commissioner, CI. The effective seizure date is: The date of seizure, if seized by the IRS. The date that IRS actually perfects the seizure in an adoptive seizure. The first date that any initial action is taken to seize the property for forfeiture if IRS initially seized property as "evidence" . A separate TDF 92-22.46 must be completed for each seizure (asset or "lot" ), and should not be grouped on one sharing form. Where multiple assets are seized on the same date, in the same investigation, and a request to share each asset is made, preparation of the equitable sharing requests may be simplified by the following: Prepare one original TDF 92-22.46 and in Block III, Asset Requested, enter See asset marked by an "X" on the attached list. Prepare a list of all assets seized and attach the list to the original TDF 92-22.46. Photocopy the TDF 92-22.46 and the attached list as many times as needed (a copy is needed for each asset). Place an "X" next to the specific asset requested on each copy of the attached list. Each TDF 92-22.46 must contain original signatures and the attached list. State and local law enforcement agencies must complete Part VII, Sections A (representative of requesting agency) and B (legal counsel of requesting agency), to satisfy the proper signature requirements. Federal law enforcement agencies are exempt from the requirement in part VII section B. Appendix A in Treasury Guide to Equitable Sharing (October 1, 1996) contains further specific information relating to the completion of TDF 92-22.46.
### [9.7] 12.8 (04-30-1998) DETERMINING EQUITABLE SHARING PERCENTAGE OF NET PROCEEDS
Equitable sharing is based upon net proceeds of the forfeiture. Net proceeds are gross receipts from forfeiture or the sale of the forfeited property, less: Payments to third-party interests. Payments for CI case-related expenses. Payments to informants as they relate to the seizure/forfeiture. Treasury property management expenses and/or any payments for reimbursements from the Treasury Forfeiture Fund to the requesting agency relating to the seizure/forfeiture. In joint investigations and adoptive seizures, Treasury policy directs that sharing reflect the degree of direct or indirect participation of the agency in the law enforcement effort that resulted in the forfeiture. This policy is also used in adoptive seizures. Normally, the major criterion in this determination involves the number of hours expended by each participating agency and the IRS (special agent, tax fraud investigative aide, Group Manager, and revenue agent, if applicable), expressed as a percentage of the total.
### [9.7] 12.8.1 (04-30-1998) Additional Factors to Justify Sharing Percentages
At times, hours expended on the investigation by a requesting agency or foreign country do not fully reflect its assistance in the seizure/forfeiture. Additional factors may be considered to justify sharing percentages. Additional justification should be in writing and in sufficient narrative form as an attachment to Form TDF 92-22.46. The following paragraphs address these factors in question form. Was the seizure adopted? In adopted seizures, this question will be the only question that needs to be on Form TDF 92-22.46. The narrative should address the legal basis for adoption. Did the requesting agency or foreign country originate all information that led to the seizure? If so, provide a brief, accurate narrative pertaining to how they gained the information. This narrative should cover such things as informants, fortuitous information, and ongoing investigative efforts. What was the degree of direct law enforcement participation by the requesting agency or foreign country in the investigation which led to the seizure? A brief, accurate narrative should be prepared addressing the merits of the requesting agency's or foreign country's participation in relation to the degree of the requested sharing. Did the requesting agency or foreign country provide unique or indispensable assistance? A brief, accurate narrative should address this type of assistance if provided. Examples include seizure of property in a jurisdiction far removed from the jurisdiction of the investigation, providing an informant who has access to documents essential to securing a conviction, and recovery of relevant information from a target which only it can obtain without arousing suspicion. Conversely, provision of services typically provided by many agencies such as drug detection dogs, surveillance equipment, lab analyses, or undercover operatives are not normally considered unique. Could the requesting agency obtain forfeiture of the property under State law? If the State or local agency could have forfeited the property under State statutes, provide a narrative as to why this avenue was not pursued.
### [9.7] 12.8.2 (04-30-1998) Treasury Forfeiture Share
The Treasury Forfeiture Fund will retain at least 20 percent net proceeds in all seizure-related investigations.
### [9.7] 12.8.3 (04-30-1998) Single Assets and Equitable Sharing
If a seizure consists of a single asset which is requested by the local or state agency, the Treasury agency shall recover its cost and its equitable share. If the requesting federal, state, or local agency or foreign country is unable to pay the Treasury agency's cost and equitable share, the property shall be sold and the proceeds equitably distributed. Exceptions to the above may be granted by the Assistant Commissioner, CI, upon written assurances that the requesting agency lacks the funds or authority to pay the funds, and the forfeited item will fill a demonstrated need of the requesting agency.
### [9.7] 12.8.4 (04-30-1998) Sharing in Task Force and other Multi-Agency Investigations
All participating investigative agencies should meet early on to coordinate the potential equitable (asset) sharing. A written general agreement to govern the equitable sharing may prevent future conflict between the agencies. When a pre-agreed equitable sharing distribution agreement based upon personnel and other contributions to the task force operation involving the IRS, other Treasury agencies, non-Treasury federal agencies, and/or state or local law enforcement agencies exists, the agreement will be honored in either of the following situations: When the task force itself is a legal entity (formal) entitled to receive and spend money, and the agreed percentages fairly reflect overall agency contributions to the task force, single checks will be issued to the task force and/or its constituent members. The National Crime Information Center (NCIC) number of the task force must be indicated on the TDF 92-22.46. When the task force is not a legal entity (informal) entitled to receive and spend money, the agreed upon percentages will be honored when the Assistant Commissioner, CI, is satisfied that the percentages continue to reflect the overall agency contributions to the task force, and the task force has a well-defined subject area or organization target as its focus, so that it may be legitimately claimed that specific seizures are part of the overall investigation. Separate checks will be issued to each individual law enforcement agency of the task force. When IRS is not a part of a task force agreement, IRS investigative hours should be included with the task force hours in determining the equitable sharing percentages. Sharing with state and local prosecutorial agencies--state and local prosecutorial agencies can qualify for an equitable share depending upon the contribution made to the overall seizure/forfeiture effort. The contribution may consist of assistance in the preparation of search and seizure warrants or other documents relating to the forfeiture, or by providing a key informant, or substantially assisting throughout the investigation leading to a forfeiture. The equitable share will be based upon hours expended. Shares will also be made on a case-by-case basis for prosecuting under state law criminal cases directly related to a federal forfeiture. Cross-designating state or local prosecutors as Special Assistant U.S. Attorneys to assist, or handle the federal forfeiture or related cases in federal court may also result in equitable sharing. The net proceeds of shares for IRS or any participating Treasury agency will be deposited in the Treasury Forfeiture Fund. The assigned special agent will ensure that Form TDF 92-22.46 is properly prepared by the requesting agency and timely filed with district AFC. The Form TDF 92-22.46 is considered timely filed if signed by the proper representative of the requesting agency and delivered to the Service within 60 days following the seizure or adoption date. No sharing request can be considered unless it is submitted within 60 calendar days of the seizure or within 60 days of the federal adoption of a state or local seizure. The 60 day rule can be waived based upon a written request from the state or local agency to the IRS, stating the reasons for the late submission of the equitable sharing request and proving justification for the waiver. The assigned special agent will also ensure that requesting agencies are kept apprised of the status of their request following the seizure and subsequent proceedings, including forfeiture, or if the property is not forfeited, but is returned to the owner, claimant, or petitioner. Upon receipt of the Forms TDF 92-22.46, the district AFC will ensure that the forms are properly prepared and signed by the requesting agencies. When a Form TDF 92-22.46 is received from a State or local law enforcement agency, the district AFC will ensure that the requesting agency's narrative indicates that all assets shall only increase, and not supplant, law enforcement resources of the specific participating agency (in accordance with Appendix F of the Treasury Guide). In instances where the requesting agency is making a request for items/assets which do not appear to have a valid law enforcement purpose, e.g., jet skis, cappuccino maker, etc., the AFC must ensure that the narrative contains specific justification for placing such assets into official use. District AFCs will expeditiously process equitable sharing requests. Upon receipt of the Form(s) TDF 92-22.46, the AFC will prepare an equitable sharing decision form for the signature of the Chief, CI, which, at the Chief's discretion, may be signed by the Branch Chief (Exhibit 12-3). The assigned special agent, AFC, and Chief, CI, will determine if the requested sharing amount is commensurate with the requesting agency's participation. If the recommended sharing amount is different from the requested amount, the AFC will prepare an evaluation report for attachment to the decision form (Exhibit 12-4). The Chief, CI, shall ensure that the recommendation to the Assistant Commissioner, CI, for equitable sharing bears a reasonable relationship to the degree of direct participation of the requesting agency. This relationship will consider the total value of all property forfeited, and the total law enforcement effort with respect to the violation of law on which forfeiture is based. Upon approval by the Chief or Branch Chief, CI, Form TDF 92-22.46 and the decision form (for each sharing request) will be transmitted directly to the Assistant Commissioner, CI, for approval (Exhibit 12-5). Counter Technology Inc. (CTI) personnel at Headquarters will update Asset Forfeiture Tracking System (AFTRAK) indicating the receipt of the request. A sharing request approved by the Assistant Commissioner, CI, will be returned to the Chief, CI, pending final forfeiture, along with a copy of a notification letter (Exhibit 12-6, Sharing Notification Letter) directed to the agency requesting sharing, notifying the requesting agency of the Assistant Commissioner's, CI, decision. The Assistant Commissioner, CI, will send a copy of the approved sharing request to Treasury Executive Office for Asset Forfeiture (TEOAF), Attention: Equitable Sharing Coordinator. CTI personnel at Headquarters will update AFTRAK indicating the approval of the request prior to returning the request to the district AFC along with the copy sent to TEOAF. After forfeiture, all approved requests for transfers of forfeited cash or the net proceeds of forfeited property, along with documentation of the forfeiture, must be forwarded by the AFC to the: Executive Office for Asset Forfeiture, Attn: Equitable Sharing--Coordinator, Suite 700, 740 15th Street NW, Washington, DC 20220.
### [9.7] 12.9 (04-30-1998) DECISION MAKERS FOR EQUITABLE SHARING REQUESTS
In all forfeiture cases (except those involving foreign sharing requests or real property), where the value of the forfeited property is less than $1,000,000, the Treasury investigative agency perfecting the forfeiture determines the amount of the equitable share. Pursuant to Delegation Order 158, when the IRS perfects the forfeiture, the determination is made by the Assistant Commissioner, CI, and delegated down to the Chief, Office of Narcotics, Currency Crimes International, except for amounts of $100,000 or less, which is delegated to the Section Chief, Asset Forfeiture and Narcotics Section. In administrative and judicial forfeiture cases (except those involving foreign sharing requests), where the property is valued at $1,000,000 or more, and in cases involving the transfer of real property, the Under Secretary of the Treasury (Enforcement) determines the amount of equitable share. In administrative and judicial forfeiture cases involving a foreign country sharing request, the Under Secretary of the Treasury (Enforcement) and the Secretary of State determine the amount of equitable share. Recommended equitable shares are not guaranteed until approved by the final decision maker and all actions by the claimant have been resolved. The decision maker should consider the investigative or prosecutorial efforts of all participating agencies when determining appropriate equitable shares. The decision maker should also involve all participating agencies in any equitable sharing ceremonies or press releases where credit for investigative/prosecutorial efforts will be recognized or discussed. The Assistant United States Attorney (AUSA) will be offered the opportunity for input before final sharing decisions are made when the forfeiture is a civil judicial forfeiture or a criminal forfeiture. The determining official shall ensure that the Treasury Forfeiture Fund receives its costs and equitable share to reflect total Treasury participation in the forfeiture effort. This may be waived based upon sufficient demonstrated need on the part of the requesting agency.
### [9.7] 12.10 (04-30-1998) DISPOSITION OF EQUITABLE SHARE
The Chief, CI, will coordinate the distribution of the requested property under approved equitable sharing agreements. Exhibit 10-3 is a letter used to transfer property to a requesting agency. If the property consists of funds on deposit, the Chief, CI can obtain a check payable to the requesting agency, and personally present a check in a significant amount to the appropriate official of the agency. Shares to a foreign country will be coordinated with the State Department and the Office of International Affairs, Criminal Division, Department of Justice. The presentation by the Chief, CI, or the State Department in investigations involving foreign countries is to ensure that law enforcement agencies are properly thanked for their participation in the investigation and to encourage future joint efforts. The Chief, CI, will be sensitive to the desire of the District Director, U.S. Attorney, or Assistant Commissioner, CI, to be involved in formal presentations. The date of disposition and other pertinent information of equitable sharing will be updated on Form 4008S by the district AFC and forwarded to the AFTRAK SPU. The National Finance Center will notify TEOAF of the dates and amounts of equitable sharing checks made payable to the sharing agency/country. TEOAF will notify the district AFC of the dates and amounts of equitable sharing checks for AFTRAK updating purposes.
### [9.7] 12.11 (04-30-1998) OBTAINING SHARING CHECK FOR PRESENTATION
If an equitable sharing request has been filed and the Chief, CI, elects to personally present the sharing check to the appropriate requesting agency official, the district AFC shall prepare the Disposition Instructions for Currency Held in the Customs Suspense Account, TEOAF Form 2 (Exhibit 9-6) with the following in the additional comments section of the disposition form: Send equitable sharing check to the AFC for presentation. NOTE: If this is not done, the check will be sent directly to the requesting agency. The AFC should then fax the form to TEOAF to initiate the final disposition of funds held in the Customs Suspense Account.
### [9.7] 12.12 (04-30-1998) USES OF EQUITABLE SHARED PROPERTY BY REQUESTING AGENCIES
Section X of the Treasury Guide to Equitable Sharing sets forth permissible and impermissible uses of equitably shared proceeds and property by participating agencies or foreign countries. The TEOAF requires a Federal Equitable Sharing Agreement to be completed by each participating state or local agency that shares in assets seized for forfeiture pursuant to Title 18. The agreement cites the requirements for participation by the agencies in the Federal Equitable Sharing Program and the restrictions upon the use of federally forfeited property or proceeds from such property which is equitably shared. A sample of this agreement is contained in Appendix C of the Treasury Equitable Sharing Guide. Property cannot be shared with a state or local agency unless a signed agreement has been submitted. Federal agencies are exempt from this requirement. Each state or local agency receiving any assets under a sharing agreement must implement standard accounting procedures and internal controls to track equitably shared monies and tangible property. Appendix B of The Department of Treasury Guide to Equitable Sharing contains sample bookkeeping procedures that will meet this requirement. If a state or local agency receives more than $100,000 in shared cash, proceeds, or tangible property from Treasury agencies in a single fiscal year, the State or local agency must ensure that a standard financial audit is performed annually, consistent with the guidelines in Appendix D and E of the Treasury Equitable Sharing Guide. An independent accounting firm may be engaged to perform the required audit and may be paid from shared cash or proceeds. The audit report must be sent to the Director, Executive Office for Asset Forfeiture, Department of the Treasury, Suite 700, 740 15th Street NW, Washington, DC 20220. At the conclusion of each State or local agency's fiscal year, the agency must also prepare the Annual Certification Report contained in the Department of the Treasury Guide to Equitable Sharing, Appendix D. The Annual Certification Report must also be sent to the Director, Executive Office for Asset Forfeiture. State and local agencies must be aware of specific limitations imposed upon the use of equitably shared property and should refer to Treasury's Guide to Equitable Sharing, Section X for additional clarification of the reporting and certification procedures.
### [9.7] 12.13 (04-30-1998) PREPARATION OF REVERSE ASSET SHARING REQUESTS
Reverse asset sharing occurs when IRS participates in a joint investigation with a Department of Justice (DOJ) agency or the U.S. Postal Service, and the other agency is the seizing agency. The Chief, CI, shall request an equitable share of the seized property for official use, if needed, or monetary instruments or proceeds from the sale of property to be transferred to the Treasury Forfeiture Fund. IRS must complete Form DAG-71 (Exhibit 12-7) to share these assets, and submit the form to the seizing agency. The DAG-71 must be submitted by the Service to the lead Justice Department agency or Postal Service within 60 days after the seizure. The case agent must pay particular attention to the dates of seizures made by Justice agencies or the Postal Service in joint investigations to ensure timely submission of sharing requests. If the DAG-71 is not filed within 60 days of the Justice agency or Postal Service seizure date, a justification for a waiver of the 60-day rule and a reason for the waiver must be included with the DAG-71. The justification is subject to approval by Justice. Failure to adhere to these procedures may result in delayed or lost shares to the Service and the Treasury Forfeiture Fund. The Treasury and Justice funds contain similar provisions for achieving equitable sharing between the respective bureaus involved in joint cases. For assets forfeited on or after October 1, 1993, regardless of the seizure date, Justice and Treasury agencies will submit sharing requests in joint investigations to the seizing agency. Upon approval, an appropriate amount will be equitably shared between Funds. Pursuant to Treasury's Guidelines for Seized and Forfeited Property, a copy of reverse equitable sharing requests shall be forwarded by the district AFC upon filing to TEOAF, Attn: Equitable Sharing Coordinator, Suite 700, 740 15th Street, NW, Washington, DC 20220. The district AFC shall call the AFTRAK SPU and provide the date of seizure, description of seized property, and seizing agency to obtain an AFTRAK number. A Form 4008S with attached copy of the DAG-71 must be sent to the AFTRAK SPU. The DAG-71 requesting reverse equitable sharing must include the following information: The "Contact Person" section, Part II, should be completed with the name of the AFC for the requesting district, if possible; otherwise, enter the name of the case agent. The asset requested, Part III, and related property description shall be specific and include serial numbers or other identifiers as appropriate to prevent confusion as to the exact asset requested. Specific Intended Law Enforcement Use will be either "Place into Official Use" or "Other" transfer to the Treasury Forfeiture Fund. All questions in Part V should be answered with additional details provided as necessary in Part VI. Part VIII., A., "Certifications," should be signed by the Chief, CI, of that district. Part VIII., B., the legal counsel signature, does not have to be completed by sharing federal agencies. The DOJ Asset Forfeiture Fund policy allows a maximum asset sharing amount of 80 percent. Upon receipt of a check or shared property, a Form 4008S must be forwarded to the AFTRAK SPU to indicate final disposition of the reverse equitable sharing request. If, after receipt of property, e.g., computer equipment, by CI under a reverse sharing agreement, it is determined that the property will not meet the 1 year in-service condition of the agreement, the AFC will contact the seizing agency from whom the property was received and arrange its return. If the agency does not want the property returned, the AFC will document this response by memorandum for the file and dispose of the property through Facilities. The district office shall also obtain a Subject Seizure Investigation number for each reverse asset sharing case to track time expended on the seizure action and to document and monitor the submission of the DAG-71. Exhibit [9.7] 12-1 (04/30/98) Sample TDF 92-22.46, Request For Equitable Sharing Exhibit [9.7] 12-1 (Cont.) (04/30/98) Sample TDF 92-22.46, Request For Equitable Sharing Exhibit [9.7] 12-1 (Cont. 3) (04/30/98) Sample TDF 92-22.46, Request For Equitable Sharing Exhibit [9.7] 12-1 (Cont. 4) (04/30/98) Sample TDF 92-22.46, Request For Equitable Sharing
Exhibit [9.7] 12-2 (04/30/98)
Checklist For Handling Equitable Sharing Request

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CHECKLIST FOR REVIEWING EQUITABLE SHARING REQUESTS AND FOR PREPARING DECISION FORMS
1. | Was a copy of the request forwarded to TEOAF within 10 days from receipt of the request?
2. | AFTRAK # and Case # must be entered.
3. | AFTRAK # must match the asset requested.
4. | Date of the signed request by the agency must be within 60 days of the date of seizure/adoption. If the request is over the 60 day deadline, justification for the delay must be detailed in the cover memo.
5. | A contact name and number must be entered.
6. | If sharing is for currency or the proceeds of an asset, the percentage requested must be entered.
7. | If other assets were seized, a list of those assets must be attached. The AFTRAK # and the value of each asset should be noted.
8. | If a vehicle is requested, "Place into Official Use" must be marked.
9. | The percentage requested must be equitable and justified by the sharing application and supporting documentation.
10. | Section V must be completed and the number of hours must be entered. This number must be specific and accurate. "Hundreds" or "thousands" are not acceptable answers. "250" or "2200" are acceptable entries.
11. | A narrative must be completed and adequate details regarding the requestors participation in the investigation must be completed. Each application should be unique to the agency and investigation. Applications lacking specificity and detail are not acceptable.
12. | Signatures must be originals. Legal Counsel's review is only needed for State and Local requests.
13. | A cover memo to the AC (CI) is recommended (See Exhibit (11)00-69).
14. | If Judicial, insure that a copy of the request was forwarded to the USAO for review and comment.
15. | A Form 4008s must be completed and forwarded to the AFTRAK Special Projects Unit. A copy of the front of the TD F 92-22.46 must be attached for reference.
16. | Review the district files to insure that a Sharing Agreement has been submitted to TEOAF.
Completion of the Decision Form
1. | A list of "Other Assets Seized" (if applicable) must be attached.
2. | A list of "Other Treasury Agencies" involved in the case (if applicable) must be attached.
3. | A list of "Other Agencies Requesting to Share" (if applicable) must be attached.
4. | The number of hours that IRS expended must be entered.
5. | Percentage recommendations should be based on:
| # of hours expended by Requesting Agency Total Investigative Hours (All Agencies)
6. | An evaluation form for each Requesting Agency must be completed and attached. If the hours expended do not accurately reflect the Requesting Agencies participation, this form should be used to support the recommended percentage.
7. | If Judicial, insure that a copy of the request was forwarded to the AUSA involved to either concur with or deny the recommended percentage.
8. | The DAFC should initial next to the signature line for the Chief, CID as verification that he/she reviewed the request.
9. | The entire signature block must be completed before submitting the request to Headquarters, Asset Seizure/Forfeiture Section.
Exhibit [9.7] 12-3 (04/30/98) Equitable Sharing Decision Form Exhibit [9.7] 12-3 (Cont.) (04/30/98) Equitable Sharing Decision Form Exhibit [9.7] 12-3 (Cont. 3) (04/30/98) Equitable Sharing Decision Form
Exhibit [9.7] 12-4 (04/30/98)
Evaluation Report For Sharing Requests

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EVALUATION REPORT FOR SHARING REQUESTS
1. | Was the seizure adopted?
| [ ] No [ ] Yes
2. | What was the degree of direct law enforcement participation by the Federal Agency or the State/Local law enforcement organization into the investigation which led to the seizure?
3. | Did the requesting agency/organization originate the information that led to the ultimate seizure? (If yes, explain).
| [ ] No [ ] Yes
4. | Did the requesting agency/organization provide unique or indispensable assistance? (If yes, explain).
| [ ] No [ ] Yes
5. | Could the requesting state or local law enforcement organization obtain forfeiture of the assets under state law?
| [ ] No [ ] Yes
Exhibit [9.7] 12-5 (04/30/98)
Transmittal of Equitable Sharing Request

>
Internal Revenue Service
memorandum
date:
to: | Assistant Commissioner (Criminal Investigation) CP:CI:O:N:A
from: | Chief, Criminal Investigation Division
| ( District Name )
subject: | Equitable Sharing Request
| In Re Subject's Name
| AFTRAK #:
| In Accordance with Section VIII of the Department of The Treasury's Guide to Equitable Sharing, attached herewith is the Request for Transfer of Property Seized/Forfeited by a Treasury Agency submitted by the Name of Agency) .
| Attached also is the respective Decision Forms for Transfer of Property Judicially Forfeited prepared by the (Name of District Office) .
| If members of your staff have any questions, they should contact (DAFC's Name) , Asset Forfeiture Coordinator, at (Phone Number) or (DAFS's Name) , District Asset Forfeiture Specialist at (Phone Number) .
|  | Chief, Criminal Investigation Division
| Attachments
Exhibit [9.7] 12-6 (04/30/98)
Notification of Equitable Sharing Decision Letter

>
INTERNAL REVENUE SERVICE | DEPARTMENT OF THE TREASURY
District
Director | Criminal Investigation
| Person to Contact:
(Name of Contact) | Joe Smurf
(Name of Local Agency) | Asset Forfeiture Coordinator
(Address of Contact) | Telephone Number:
(City, State, Zip) | (xxx) 123-4567
| Refer Reply To:
| AFTRAK Asset #:
| Date:
| (approval date)
Exhibit [9.7] 12-6 (04/30/98)
Notification of Equitable Sharing Decision Letter

>
RE: (Description of Asset)
Dear (Point of Contact):
This letter responds to your sharing request filed with the Internal Revenue Service (IRS) seeking equitable distribution of the above-described property pursuant to Section 309 of Public Law 98-4733 (the Comprehensive Crime Control Act of 1984), as implemented by the Secretary of the Treasury's Guidelines on Seized and Forfeited Property (October 1993).
In your request for equitable sharing, you asked for the following:
( ) | Transfer of the asset described above for placement into official law enforcement use by our department/agency.
( ) | _____ % of the net forfeited proceeds resulting from the above seizure.
DECISION
( ) | Your sharing request for transfer of this asset has been granted. Upon forfeiture , it will be released to you contingent upon the payment of (1) all outstanding liens against the property, (2) all related seizure and forfeiture expenses incurred by the Department of the Treasury, and (3) a federal equitable sharing commensurate with the Treasury Agency participation in this investigation (minimum 20% of fair market value). If your agency is unable to pay these costs, the asset will be sold and the maximum percent of net sales proceeds will be awarded in lieu of the asset. Note: Items (2) and (3) do not apply to Department of Justice agencies and MAY be waived for state and local law enforcement agencies in exceptional circumstances. Contact the person named at the top of this letter for further details.
( ) | A waiver of the federal share has been approved.
( ) | Your sharing request for net forfeited proceeds has been granted in the amount of __ %. Upon forfeiture (and sale, if appropriate), the funds will be transferred to your agency by check. This check will include a receipt bearing the seizure number referenced at the beginning of this letter. If you would prefer to have these funds electronically transferred to your agency account, please contact the person named above.
If your request has been granted in whole or in part, please note the following information:
-- | No property can be shared unless your agency has submitted a Federal Equitable Sharing Agreement to the Internal Revenue Service.
-- | All assets placed into official use must be used for a law enforcement purpose for at least one year.
-- | All state and local law enforcement agencies must implement standard accounting procedures and internal controls (e.g., tracking share requests and receipts, depositing shares into a separate revenue account or accounting code, restrictively endorsing checks upon receipt) to track equitably shared monies and tangible property. See the Department of Treasury Guide to Equitable Sharing for details.
-- | Any property transferred to your agency must be utilized as a budget enhancement and not as a budget offset.
-- | On occasion, circumstances arise which may require the return of forfeited property or proceeds after it has been equitably shared. If those circumstances occur, you may be requested to return the property or proceeds shared with you, or to have an equitable amount deducted from a future equitable share.
As previously stated, this sharing request will be processed upon forfeiture of the asset. If no claims or petitions are filed, administrative forfeitures generally occur within 90 days of seizure. These estimates do not include the time required to sell an asset.
If you have any questions regarding this letter or the status of the related forfeiture action, please contact the person named above.
|  | Sincerely,
|  | _____________________
|  | Chief, Asset Forfeiture Section
Exhibit [9.7] 12-7 (04/30/98) Sample Form DAG-71, Application For Transfer of Federally Forfeited Property Exhibit [9.7] 12-7 (Cont.) (04/30/98) Sample Form DAG-71, Application For Transfer of Federally Forfeited Property
### Internal Revenue Manual | ### Hndbk. 9.7 Chap. 12 Equitable Sharing and Reverse Asset Sharing | ### (04-30-1998)

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