Seizure Sale Procedures Were Not Always Followed and Can Be Improved

The Director, Collection, Small Business/Self-Employed Division, should require the PALS to consistently prepare a detailed sale plan once custody of the seized property has been accepted and update the IRM to include the required details of the sale plan. This could include information such as asset protection; storage options; moving and towing costs; advertising strategy; where the notice of sale will be posted; a list of sale expenses; actions to take if the minimum bid is not reached (adjourn the sale, release the property to the taxpayer, or bid in for the Government); and whether a contractor should be considered.

The Director, Collection, Small Business/Self-Employed Division, should update the IRM to clarify if indirect sale expenditures, such as the renting or leasing of equipment, can be charged to the taxpayer.

The Director, Collection, Small Business/Self-Employed Division, should establish controls to ensure that employees properly use the Form 668-E to document returning all personal items from seized vehicles to the taxpayer.

The Director, Collection, Small Business/Self-Employed Division, should update the Internal Revenue Manual (IRM) to require license plates be documented on the Form 668-E in those States in which the license plates are deemed owned by the taxpayer and not attached to the vehicle when sold.

The Director, Collection, Small Business/Self-Employed Division, should update the Internal Revenue Manual (IRM) to require that employees take necessary actions to protect taxpayer Personally Identifiable Information when seized vehicles come equipped with navigation, garage door, or other similar installed systems to reset them to the original factory settings.