(b) REAL ESTATE PURCHASED BY OTHERS.-Upon any sale of real estate, as provided in section 3701, and the payment of the purchase money, the officer making the seizure and sale shall give to the purchaser a certificate of purchase, which shall set forth the real estate purchased, for whose taxes the same was sold, the name of the purchaser, and the price paid therefor.

SEC. 3704. DEEDS OF SALE.

(a) REAL ESTATE PURCHASED BY THE UNITED STATES.-In case real estate shall be declared under section 3701 (e) to be purchased for the United States, the officer shall

(1) EXECUTION.-At the proper time, as provided in subsection (b), execute a deed therefor after its preparation and the endorsement of approval as to its form by the United States district attorney for the district in which the property is situate, and

(2) RECORD AND TRANSMISSION.-Without delay cause the same to be duly recorded in the proper registry of deeds, and immediately thereafter transmit such deed to the Commissioner. (b) REAL ESTATE PURCHASED BY OTHERS.-If the said real estate be not redeemed in the manner and within the time provided in section 3702, the said collector or deputy collector shall execute to the said purchaser, upon his surrender of said certificate, a deed of the real estate purchased by him as aforesaid, reciting the facts set forth in said certificate, and in accordance with the laws of the State in which such real estate is situate upon the subject of sales of real estate under execution.

(c) LEGAL EFFECT.

(1) AS EVIDENCE.-The deed of sale given in pursuance of this section shall be prima facie evidence of the facts therein stated; and

(2) AS CONVEYANCE OF TITLE.-If the proceedings of the officer as set forth have been substantially in accordance with the provisions of law, such deed shall be considered and operate as a conveyance of all the right, title, and interest the party delinquent had in and to the real estate thus sold at the time the lien of the United States attached thereto.

SEC. 3705. TRANSMISSION OF CERTIFICATES AND DEEDS TO COMMISSIONER.

All certificates of purchase, and deeds of property purchased by the United States under the internal revenue laws, on sales for taxes, or under executions issued from United States courts, which may be found in the office of any collector, shall be immediately transmitted by such officer to the Commissioner.

SEC. 3706. RECORDS OF SALE.

(a) REQUIREMENT.-It shall be the duty of every collector to keep a record of all sales of land made in his collection district, whether by himself or his deputies, or by another collector. And it shall be the duty of every deputy making sale, as aforesaid, to return a statement of all his proceedings to the collector, and to certify the record

thereof.

(b) CONTENTS. The record shall set forth the tax for which any such sale was made, the dates of seizure and sale, the name of the party assessed and all proceedings in making said sale, the amount of fees and expenses, the name of the purchaser, and the date of the deed.

(c) CERTIFICATION.-The said record shall be certified by the officer making the sale.

(d) COPY TO COMMISSIONER.-On or before the fifth day of each succeeding month, the collector shall transmit a copy of such record of the preceding month to the Commissioner.

(e) DELIVERY BY COLLECTOR to Successor.-In case of the death or removal of the collector, or the expiration of his term of office from any other cause, said record shall be delivered to his successor in office.

(f) COPY AS EVIDENCE.-A copy of every such record, certified by the collector, shall be evidence in any court of the truth of the facts therein stated.

SEC. 3707. CROSS REFERENCES.

For provisions relating to―

Levy, see section 3692.

Production of books, see section 3711.

Sale of indivisible property, see section 3712,

SEC, 3710. SURRENDER OF PROPERTY SUBJECT TO DISTRAINT.

(a) REQUIREMENT.-Any person in possession of property, or rights to property, subject to distraint, upon which a levy has been made, shall, upon demand by the collector or deputy collector making such levy, surrender such property or rights to such collector or deputy, unless such property or right is, at the time of such demands subject to an attachment or execution under any judicial process.

(b) PENALTY FOR VIOLATION.-Any person who fails or refuses to so surrender any of such property or rights shall be liable in his own person and estate to the United States in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of the taxes (including penalties and interest) for the collection of which such levy has been made, together with costs and interest from the date of such levy.

(c) PERSON DEFINED.-The term "person", as used in this section, includes an officer or employee of a corporation or a member or employee of a partnership, who as such officer, employee, or member is under a duty to perform the act in respect of which the violation

occurs.

SEC. 3711. PRODUCTION OF BOOKS.

All persons, and officers of companies or corporations, are required, on demand of a collector or deputy collector about to distrain or having distrained on any property, or rights of property, to exhibit all books containing evidence or statements relating to the subject of distraint, or the property or rights of property liable to distraint for the tax due.

SEC. 3712. SALE OF INDIVISIBLE PROPERTY.

When any property liable to distraint for taxes is not divisible, so as to enable the collector by sale of a part thereof to raise the whole amount of the tax, with all costs and charges, the whole of such property shall be sold, and the surplus of the proceeds of the sale, after making allowance for the amount of the tax, interest, penalties, and additions thereto, and for the costs and charges of the distraint and sale, shall be deposited with the Treasurer of the United States as provided in section 3971.

SEC. 3713. DISTRAINT BY COLLECTOR OUTSIDE HIS DISTRICT.

Any collector or deputy collector may, for the collection of taxes imposed upon any person, and committed to him for collection, seize and sell any of the property, real or personal (except property exempt from distraint and sale under section 3691), or any right or interest therein, of such person situated in any other collection district within the State in which such officer resides, notwithstanding the provisions of subsection (b) of section 3651; and his proceedings in relation thereto shall have the same effect as if the same were had in his proper collection district.

SEC. 3714. PERIOD OF LIMITATION UPON DISTRAINT.

(a) LENGTH OF PERIOD.

For period within which distraint may be begun in case of

* * *

Miscellaneous taxes, see section 3312 (d).

(b) DATE OF BEGINNING DISTRAINT.-In determining the running of any period of limitation in respect of distraint, the distraint shall be held to have been begun

(1) PERSONAL PROPERTY. In the case of personal property, on the date on which the levy upon such property is made; or (2) REAL PROPERTY. In the case of real property, on the date on which notice of the time and place of sale is given to the person whose estate it is proposed to sell.

SEC. 3715. SUCCESSIVE SEIZURES.

Whenever any property, personal or real, which is seized and sold by virtue of the foregoing provisions, is not sufficient to satisfy the claim of the United States for which distraint or seizure is made, the collector may, thereafter, and as often as the same may be necessary, proceed to seize and sell in like manner any other property liable to seizure of the person against whom such claim exists, until the amount due from him, together with all expenses, is fully paid.

SEC. 3716. FEES AND CHARGES IN DISTRAINT AND SEIZURE CASES. The Commissioner shall by regulation determine the fees and charges to be allowed in all cases of distraint and other seizures; and shall have power to determine whether any expense incurred in making any distraint or seizure was necessary.

SUBCHAPTER D-FORFEITURES

SEC. 3720. SEIZURE OF FORFEITABLE PROPERTY.
(a) PROPERTY SUBJECT TO SEIZURE AND FORFEITURE.

(1) MANUFACTURED ARTICLES. All goods, wares, merchandise, articles, or objects, on which taxes are imposed, which shall be found in the possession or custody or within the control of any person, for the purpose of being sold or removed by him in fraud of the internal revenue laws, or with design to avoid payment of said taxes, may be seized, and shall be forfeited to the United States.

(2) RAW MATERIALS.-All raw materials found in the possession of any person intending to manufacture the same into articles of a kind subject to tax for the purpose of fraudulently selling such manufactured articles, or with design to evade the payment of said tax, may also be seized, and shall be forfeited as aforesaid.

(3) EQUIPMENT.-All tools, implements, instruments, and personal property whatsoever, in the place or building, or within any yard or inclosure where such articles or raw materials are found, may also be seized, and shall be forfeited as aforesaid. (b) AUTHORITY TO MAKE SEIZURES.

(1) COLLECTORS AND DEPUTY COLLECTORS.-Such property may be seized by the collector or deputy collector of the proper district, or by such other collector or deputy collector as may be specially authorized by the Commissioner for that purpose.

(2) OTHER INTERNAL REVENUE OFFICERS.--Any officer of internal revenue may be specially authorized by the Commissioner to seize any property which may by law be subject to seizure, and for that purpose such officer shall have all the power conferred by law upon collectors; and such special authority shall be limited in respect of time, place, and kind and class of property, as the Commissioner may specify.

(c) RESPONSIBILITY.

For the issuance of certificates of probable cause relieving officers making seizures of responsibility for damages, see R. S. 970 (U. S. C., Title 28, § 818).1

SEC. 3721. CUSTODY OF SEIZED GOODS PRIOR TO JUDICIAL PROCEEDINGS.

Any goods, wares, merchandise, articles, or objects which may be seized, under the provisions of section 3720, by any collector or deputy collector may, at the option of the collector, be delivered to the marshal of the district, and remain in the care and custody and under the control of said marshal, until he shall obtain possession by process of law.

R. S. 970 has been superseded by section 2465 of Title 28 of the United States Code (62 Stat. 975); see Appendix II.

SEC. 3722. SPECIAL DISPOSITION OF PERISHABLE goods.

When any property which is seized under the provisions of section 3720 is liable to perish or become greatly reduced in price or value by keeping, or when it can not be kept without great expense

(a) APPLICATION FOR EXAMINATION.-The owner thereof, or the marshal of the district, may apply to the collector of the district to examine it; and

(b) APPRAISAL.-If, in the opinion of said collector, it shall be necessary that the said property should be sold to prevent such waste or expense, he shall appraise the same; and thereupon

(c) RETURN TO OWNER UNDER BOND.-The owner shall have said property returned to him upon giving bond in such form as may be prescribed by the Commissioner, and in an amount equal to the appraised value, with such sureties as the collector shall deem good and sufficient, 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 collector, marshal, or otherwise, as he may be ordered and directed by the court, which bond shall be filed by said collector with the United States district attorney for the district in which the proceedings in rem authorized in section 3723 may be commenced.

(d) SALE IN ABSENCE OF Bond.

(1) ORDER TO SELL.-If said owner shall neglect or refuse to give said bond, the collector shall issue to a deputy collector or to the marshal aforesaid an order to sell the same.

(2) MANNER OF SALE. The deputy collector or marshal shall thereupon advertise and sell the said property at public auction in the same manner as goods may be sold on final execution in said district.

(3) DISPOSITION OF PROCEEDS.-The proceeds of the sale, after deducting the reasonable costs of the seizure and sale, shall be paid to the court aforesaid, to abide its final order, decree, or judgment.

SEC. 3723. JUDICIAL PROCEEDINGS TO ENFORCE FORFEITURE.

(a) NATURE AND VENUE.-The proceedings to enforce such forfeitures shall be in the nature of a proceeding in rem in the district court of the United States for the district where such seizure is made.

(b) SERVICE OF PROCESS WHEN PROPERTY HAS BEEN RETURNED UNDER BOND.-In case bond as provided in section 3722 (c) shall have been executed and the property returned before seizure thereof by virtue of process in the proceedings in rem authorized in subsection (a) of this section, the marshal shall give notice of pendency of proceedings in court to the parties executing said bond, by personal service or publication, and in such manner and form as the court may direct, and the court shall thereupon have jurisdiction of said matter and parties in the same manner as if such property had been seized by virtue of the process aforesaid.

(c) COST OF SEIZURE TAXABLE.-The cost of seizure made before process issues shall be taxable by the court.