Which statement best contrasts seizure under forfeiture and seizure to enforce a tax lien?

Which statement best contrasts seizure under forfeiture and seizure to enforce a tax lien?

• A. In forfeiture, the government acquires title to the property; in seizure to enforce a tax lien, title remains with the delinquent until sale
• B. In forfeiture, title remains with the delinquent; in lien seizure, the government acquires title
• C. Forfeiture transfers title to the government and proceeds go to the taxpayer
• D. Both procedures immediately transfer title to the government with no sale proceeds returned

Answer: (A)

The key idea is who owns the property during enforcement. For forfeiture, title passes to the government—the government takes ownership and can dispose of the property to satisfy the tax debt. In contrast, when a tax lien is enforced by seizure (a levy), the government can seize the property but does not take ownership right away—the delinquent still holds title until the asset is sold. After sale, the proceeds are used to satisfy the tax lien, and any remaining funds can go to the taxpayer if permitted. So the correct statement captures that transfer of title happens in forfeiture, while in seizure to enforce a lien, title remains with the delinquent until sale.

The key idea is who owns the property during enforcement. For forfeiture, title passes to the government—the government takes ownership and can dispose of the property to satisfy the tax debt. In contrast, when a tax lien is enforced by seizure (a levy), the government can seize the property but does not take ownership right away—the delinquent still holds title until the asset is sold. After sale, the proceeds are used to satisfy the tax lien, and any remaining funds can go to the taxpayer if permitted. So the correct statement captures that transfer of title happens in forfeiture, while in seizure to enforce a lien, title remains with the delinquent until sale.