190) See supra notes 81, 221-224 and accompanying text (describing the perverse incentives set up under the forfeiture system, which allows police and prosecutors to retain seized funds and property); see also Blumenson & /Nilsen, supra note 33, at 69 ("One Department of Justice manual governing racketeering prosecutions, for example, suggests that prosecution may be contingent on the presence of forfeitable
assets, rather than forfeiture being an incident of prosecution.
government's interest in the forfeitable
funds overrode the
property in one proceeding, [it] has structured the
230) Further, such a rule may be easier for the Service to administer assuming that valuation is easier when the property becomes transferable or no forfeitable
It has been argued that payments under a deferred compensation contract have no estate tax value if they were forfeitable
to the executive during his lifetime.
Rights that are conditioned upon the sufficiency of plan assets in the event of plan termination or partial termination are considered to be forfeitable
For example, legitimate funds used to disguise illegitimate funds are forfeitable
as property "involved in" a money laundering offense.
Extent to which Must meet ERISA The ERISA vesting benefits may be vesting rules apply only if forfeitable
In other words, an employee will not be subject to tax on restricted property as long as his rights to that property are forfeitable
(subject to a substantial risk of forfeiture) and not transferable by him free of such risk.
Normally, a cash method taxpayer does not have to report an item of income if it is restricted or forfeitable
attributes of being waivable, forfeitable
, and consentable, and a court
not the obligation under a specific account or the obligation 'arising' from the deposit of forfeitable