Sec. 3691. (b) Appraisal.-The officer making the distraint shall summon three disinterested householders of the vicinity, who shall appraise and set apart to the owner the amount of property herein declared to be exempt.

Sec. 3692. Levy.

In case of neglect or refusal under section 3690, the collector may levy, or by warrant may authorize a deputy collector to levy, upon all property and rights to property, except such as are exempt by the preceding section, belonging to such person, or on which the lien provided in section 3670 exists, for the payment of the sum due, with interest and penalty for nonpayment, and also of such further sum as shall be sufficient for the fees, costs, and expenses of such levy.

Sec. 3693. Proceedings on distraint.

When distraint is made, as provided in section 3690

Sec. 3693. (a) Account and notice to owner.— The officer charged with the collection shall make or cause to be made an account of the goods or effects distrained, a copy of which, signed by the officer making such distraint, shall be left with the owner or possessor of such goods or effects, or at his dwelling or usual place of business, with some person of suitable age and discretion, if any such can be found, with a note of the sum demanded and the time and place of sale; and

Sec. 3693. (b) Public notice.-Forthwith cause a notification to be published in some newspaper within the county wherein said distraint is made, if a newspaper is published in said county, or to be publicly posted at the post office, if there be one within five miles nearest to the residence of the person whose property shall be distrained, and in not less than two other public places. Such notice shall specify the articles distrained, and the time and place for the sale thereof.

Sec. 3693. (c) Time and place of sale.-The time of sale shall not be less than ten nor more than twenty days from the date of such notification to the owner or possessor of the property and the publication or posting of such notice as provided in subsection (b) and the place proposed for the sale shall not be more than five miles distant from the place of making such distraint.

Sec. 3693. (d) Adjournment of sale.-Said sale may be adjourned from time to time by said officer, if he deems it advisable, but not for a time to exceed in all thirty days.

Sec. 3694. Priority of specific tax liability on distrained property.

When property subject to tax, but upon which the tax has not been paid, is seized upon distraint and sold, the amount of such tax shall, after deducting the expenses of such sale, be first appropriated out of the proceeds thereof to the payment of the tax. And if no assessment of such tax has been made upon such property, the collector shall make a re

turn thereof in the form required by law, and the Commissioner shall assess the tax thereon.

Sec. 3695. Property for account of the United States.

Sec. 3695. (a) Purchase.-When any personal property is advertised for sale under distraint as aforesaid, the officer making the seizure shall proceed to sell such property at a public auction, offering the same at a minimum price, including the expenses of making the levy and of advertising the sale, and if the amount bid for such property at the sale is not equal to the minimum price so fixed, the officer conducting the sale may declare the same to be purchased by him for the United States.

Sec. 3695. (b) Sale. The property so purchased may be sold by the collector within whose district the sale was made under such regulations as may be prescribed by the Commissioner, with the approval of the Secretary.

Sec. 3695. (c) Accounting.-The collector shall render to the Commissioner a distinct account of all charges incurred in such sales, and, in case of resale, shall pay into the Treasury the proceeds as provided in section 3971.

Sec. 3696. Redemption of property.

In any case of distraint for the payment of taxes, the goods, chattels, or effects so distrained shall be restored to the owner or possessor, if, prior to the sale, payment of the amount due is made to the proper officer charged with the collection, together with the fees and other charges; but in case of nonpayment, the said officer shall proceed to sell the said goods, chattels, or effects at public auction.

Sec. 3697. Certificates of sale.

In all cases of sale, as aforesaid, the certificate of such sale

Sec. 3697. (a) As evidence.-Shall be prima facie evidence of the right of the officer to make such sale, and conclusive evidence of the regularity of his proceedings in making the sale; and

Sec. 3697. (b) As conveyances.-Shall transfer to the purchaser all right, title, and interest of such delinquent in and to the property sold; and

Sec. 3697. (c) As authority for transfer of corporate stock. Where such property consists of stocks, shall be notice, when received, to any corporation, company, or association of said transfer, and shall be authority to such corporation, company, or association to record the transfer on their books and records in the same manner as if the stocks were transferred or assigned by the party holding the same, in lieu of any original or prior certificates, which shall be void, whether canceled or not; and

Sec. 3697. (d) As receipts.-Where the subject of sale is securities or other evidences of debt, shall be a good and valid receipt to the person holding the same, as against any person holding, or claiming to hold, possession of such securities or other evidences of debt.

Sec. 3698. Cross references.

For provisions relating to

Production of books, see section 3711.

Sale of indivisible property, see section 3712. Stamps, marks, and brands, see section 3725.

PART II-DISTRAINT ON REAL ESTATE

Sec. 3700. Authority to distrain.

When goods, chattels, or effects sufficient to satisfy the taxes imposed upon any person are not found by the collector or deputy collector, he is authorized to collect the same by seizure and sale of real estate.

Sec. 3701. Proceedings on distraint.

Sec. 3701. (a) Notice to owner. The officer making the seizure mentioned in the preceding section shall give notice to the person whose estate it is proposed to sell by giving him in hand, or leaving at his last or usual place of abode, if he has any such within the collection district where said estate is situated, a notice, in writing, stating what particular estate is to be sold, describing the same with reasonable certainty, and the time when and place where said officer proposes to sell the same.

Sec. 3701. (b) Public notice.-The said officer shall also cause a notification to the same effect to be published in some newspaper within the county where such seizure is made, if any such there be, and shall also cause a like notice to be posted at the post office nearest to the estate seized, and in two other public places within the county.

Sec. 3701. (c) Time and place of sale.-The time of sale shall not be less than twenty nor more than forty days from the time of giving said notice. The place of said sale shall not be more than five miles distant from the estate seized, except by special order of the Commissioner.

Sec. 3701. (d) Manner of sale.-At the time and place appointed, the officer making such seizure shall proceed to sell the said estate at public auction, offering the same at a minimum price, including the expense of making such levy, and all charges for advertising. When the real estate so seized consists of several distinct tracts or parcels, the officer making sale thereof shall offer each tract or parcel for sale separately, and shall, if he deem it advisable, apportion the expenses and charges aforesaid to such several tracts or parcels, or to any of them, in estimating the minimum price.

Sec. 3701. (e) Purchasers.-If no person offers for said estate the amount of said minimum price, the officer shall declare the same to be purchased by him for the United States; otherwise the same shall be declared to be sold to the highest bidder.

Sec. 3701. (f) Adjournment of sale.-The said sale may be adjourned from time to time by said officer for not exceeding thirty days in all, if he shall think it advisable so to do. If the amount bid shall not be then and there paid, the officer shall forthwith proceed to again sell said estate in the

same manner.

Sec. 3702. Redemption of real estate.

Sec. 3702. (a) Before sale.-Any person whose estate may be proceeded against as aforesaid shall have the right to pay the amount due, together with the costs and charges thereon, to the collector or deputy collector at any time prior to the sale thereof, and all further proceedings shall cease from the time of such payment.

Sec. 3702. (b) After sale.—

Sec. 3702. (b) (1) Period.-The owners of any real estate sold as aforesaid, their heirs, executors, or administrators, or any person having any interest therein, or a lien thereon, or any person in their behalf, shall be permitted to redeem the land sold, or any particular tract thereof, at any time within one year after the sale thereof.

Sec. 3702. (b) (2) Price.—The land or tract aforesaid shall be permitted to be redeemed upon payment to the purchaser, or in case he can not be found in the county in which the land to be redeemed is situated, then to the collector of the district in which the land is situated, for the use of the purchaser, his heirs, or assigns, the amount paid by the said purchaser and interest thereon at the rate of 20 per centum per annum.

Sec. 3702. (c) Record.-When any lands sold are redeemed as provided in this section, the collector shall make entry of the fact upon the record mentioned in section 3706, and the said entry shall be evidence of such redemption.

Sec. 3703. Certificates of purchase.

Sec. 3703. (a) Real estate purchased by the United States.-In case the real estate sold under section 3701 shall be declared to be purchased for the United States, the officer shall immediately transmit a certificate of the purchase to the Commissioner.

Sec. 3703. (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.

Sec. 3704. (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—

Sec. 3704. (a) (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

Sec. 3704. (a) (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.

Sec. 3704. (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.

Sec. 3704. (c) Legal effect.—

Sec. 3704. (c) (1) As evidence.-The deed of sale given in pursuance of this section shall be prima facie evidence of the facts therein stated; and

Sec. 3704. (c) (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.

Sec. 3706. (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.

Sec. 3706. (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.

Sec. 3706. (c) Certification.—The said record shall be certified by the officer making the sale.

Sec. 3706. (d) Copy to Commissioner.-On or before the 5th day of each succeeding month, the collector shall transmit a copy of such record of the preceding month to the Commissioner.

Sec. 3706. (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.

Sec. 3706. (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. Administration of real estate acquired by the United States, see section 3795.

PART III-GENERAL PROVISIONS

Sec. 3710. Surrender of property subject to distraint.

Sec. 3710. (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 demand, subject to an attachment or execution under any judicial process.

Sec. 3710. (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.

Sec. 3710. (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.

Sec. 3714. (a) Length of period.—

For period within which distraint may be begun in case of

Income tax, see sections 276 (c) and 277.
Estate tax, see sections 874 (b) (2) and 875.
Miscellaneous taxes, see section 3312 (d).

Sec. 3714. (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

Sec. 3714. (b) (1) Personal property.—In the case of personal property, on the date on which the levy upon such property is made; or

Sec. 3714. (b) (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 provisons, 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 sei

zure 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.

Sec. 3717. Cross reference.

For distraint proceedings against delinquent collectors, see sections 3975 to 3978.

Sec. 3720. Sezure of forfeitable property.

Sec. 3720. (a) Property subject to seizure and forfeiture.

Sec. 3720. (a) (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.

Sec. 3720. (a) (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.

Sec. 3720. (a) (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.

Sec. 3720. (b) Authority to make seizures.

Sec. 3720. (b) (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.

Sec. 3720. (b) (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.

Sec. 3720. (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).

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.

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

Sec. 3722. (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

Sec. 3722. (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

Sec. 3722. (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.

Sec. 3722. (d) Sale in absence of bond.—

Sec. 3722. (d) (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.

Sec. 3722. (d) (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.

Sec. 3722. (d) (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.

Sec. 3723. (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.

Sec. 3723. (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.

Sec. 3723. (c) Cost of seizure taxable.—The cost of seizure made before process issues shall be taxable by the court.

Sec. 3723. (d) Consolidation.

For consolidation of seizures in one suit, see R. S. 920 (U. S. C., Title 28, § 733).

Sec. 3724. Goods valued at $500 or less.

In all cases of seizure of any goods, wares, or merchandise as being subject to forfeiture under any provision of the internal revenue laws which, in the opinion of the collector or deputy collector making the seizure, are of the appraised value of $500 or less, the said collector or deputy collector shall, except in cases otherwise provided, proceed as follows:

Sec. 3724. (a) List and appraisement.-He shall cause a list containing a particular description of the goods, wares, or merchandise seized to be prepared in duplicate, and an appraisement thereof to be made by three sworn appraisers, to be selected by him, who shall be respectable and disinterested citizens of the United States residing within the collection district wherein the seizure was made. Said list and appraisement shall be properly attested by the said collector or deputy collector and the said appraisers, for which service each of the said appraisers shall be allowed the sum of $1.50 a day, to be paid in the manner provided by law for other necessary charges of collectors.

Sec. 3724. (b) Notice of seizure.-If the said goods are found by the said appraisers to be of the value of $500 or less, the said collector or deputy collector shall publish a notice, for three weeks, in some newspaper of the district where the seizure was made, describing the articles, and stating the time, place, and cause of their seizure, and requiring any person claiming them to appear and make such claim within thirty days from the date of the first publication of such notice.

Sec. 3724. (c) Execution of bond by claimant.— Any person claiming the goods, wares, or merchandise so seized, within the time specified in the notice, may file with the said collector or deputy collector a claim, stating his interest in the articles seized, and may execute a bond to the United States in the penal sum of $250, with sureties to be approved by the said collector or deputy collector, conditioned that, in case of condemnation of the articles so seized, the obligors shall pay all the costs and expenses of the proceedings to obtain such condemnation; and upon the delivery of such bond to the collector or deputy collector, he shall transmit the same, with the duplicate list or description of the goods seized, to the United States district attorney for the district, and said attorney shall proceed thereon in the ordinary manner prescribed by law.

Sec. 3724. (d) Sale in absence of bond.-If no claim is interposed and no bond is given within the time above specified, the collector or deputy collector, as the case may be, shall give ten days' notice of the sale of the goods, wares, or merchandise by publication, and, at the time and place specified in