Chapter 8, Section P:|
Titling upon Sale of Government-Seized Property
Revised August 14, 2008
SECTION M. CERTIFICATE OF SALE OF
The Department of Treasury, Internal Revenue Service,
U.S. Customs Service, and the U.S. Marshal's Office or local and state law
enforcement agencies under its authority may confiscate vehicles from
persons who neglect or refuse to pay taxes to the Federal Government, or
who use their vehicles in illegal operations.
Disposal of those vehicles
is handled by the issuance of agency-specific government documents, which are equivalent
to a court order. They include:
- Internal Revenue Service
The Internal Revenue
Service disposes of the vehicle with a Certificate of Sale of Seized
Property - Form 2435. (Authority is granted under Federal Statute
Section 6339 (a-5). This form serves as an ownership document,
and identifies the person or company from whom property was confiscated and
the name of the successful bidder (purchaser).
- U.S. Customs Service
U.S. Customs Service disposes of vehicles with a Report and Assignment
of Voluntarily Abandoned and Forfeited Property, Customs Form 42 which
the owner signed relinquishing his right to the vehicle. If this form is
not submitted then U.S. Customs must provide a Court Order. ·
Miscellaneous Non-expendable Property Transactions, Customs Form 37 must
accompany the transaction. · U.S. Customs Service Disposition Order is
used to identify the purchaser/recipient of the vehicle.
- United States Marshal's Service
States Marshal's Service confiscates and disposes of vehicles with: ·
United States Marshal's Bill of Sale, which in itself is a Court Order
(Comprehensive Crime Control Act of l984 - Public Law 98-473). The
United States Marshal's Bill of Sale must be signed by the U.S. Marshal,
Deputy Marshal, or a designated representative, and must indicate the
court case number. All forms must contain Vehicle Identification Number,
year model, make of vehicle and purchaser's name.
NOTE: Any of the above
government forms, if properly completed, supersede titles issued by any
licensing jurisdiction. The new owner/recipient must convert the document to a
Requirements for Titling through
The government document(s) submitted for titling after a government
confiscation transaction must
include the following information:
- Complete Description of Vehicle; i.e. Vehicle Identification
Number, year, make and model.
- Odometer Mileage Reading.
- Sale Price of Vehicle.
- Vehicle Identification Number
All vehicles being titled after government seizure must be
visually inspected to verify that the vehicle identification number on
all documents corresponds with the vehicle. Upon inspection of the
vehicle, should there be any alterations or signs of tampering with the
VIN plate, STOP inspection and contact law enforcement. A certified VIN
inspector must conduct inspection of the vehicles. If the VIN on the government form does not correspond with
the number on vehicle, the form must be rejected. Applicant shall obtain a
corrected form from the issuing agency.
The title applicant shall pay tax,
title and registration fees. Excise tax is based on the sale price indicated
on the government form. A late transfer penalty may apply for failure to
transfer ownership within 90 days from date of assignment.