IB 

Union Calendar No. 566 

114TH CONGRESS 

2D SESSION H. R. 5523 

[Report No. 114–730, Part I] 

To amend title 31, United States Code, to prohibit the Internal Revenue 

Service from carrying out seizures relating to a structuring transaction 

unless the property to be seized derived from an illegal source or the 

funds were structured for the purpose of concealing the violation of 

another criminal law or regulation, to require notice and a post-seizure 

hearing for such seizures, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 16, 2016 

Mr. ROSKAM (for himself and Mr. CROWLEY) introduced the following bill; 

which was referred to the Committee on Ways and Means, and in addition to the Committee on Financial Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such 

provisions as fall within the jurisdiction of the committee concerned 

SEPTEMBER 9, 2016 

Additional sponsors: Mr. MEEHAN, Mr. HOLDING, Mr. SMITH of Missouri, Mr. 

REED, Mr. RICE of South Carolina, Mr. MARCHANT, Mr. VAN HOLLEN, 

Mr. RENACCI, Mr. DANNY K. DAVIS of Illinois, Mr. COLLINS of Georgia, 

and Mr. HARRIS

SEPTEMBER 9, 2016 

Reported from the Committee on Ways and Means with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

SEPTEMBER 9, 2016 

The Committee on Financial Services discharged; committed to the Committee 

of the Whole House on the State of the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on June 16, 2016] 

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•HR 5523 RH

A BILL 

To amend title 31, United States Code, to prohibit the Internal Revenue Service from carrying out seizures relating 

to a structuring transaction unless the property to be 

seized derived from an illegal source or the funds were 

structured for the purpose of concealing the violation 

of another criminal law or regulation, to require notice 

and a post-seizure hearing for such seizures, and for 

other purposes. 

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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Clyde-Hirsch-Sowers 

5 RESPECT Act’’ or the ‘‘Restraining Excessive Seizure of 

6 Property through the Exploitation of Civil Asset Forfeiture 

7 Tools Act’’. 

8 SEC. 2. INTERNAL REVENUE SERVICE SEIZURE REQUIRE9 MENTS WITH RESPECT TO STRUCTURING 

10 TRANSACTIONS. 

11 Section 5317(c)(2) of title 31, United States Code, is 

12 amended— 

13 (1) by striking ‘‘Any property’’ and inserting the 

14 following: 

15 ‘‘(A) IN GENERAL.—Any property’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(B) INTERNAL REVENUE SERVICE SEIZURE

18 REQUIREMENTS WITH RESPECT TO STRUCTURING

19 TRANSACTIONS.— 

20 ‘‘(i) PROPERTY DERIVED FROM AN IL21 LEGAL SOURCE.—Property may only be 

22 seized by the Internal Revenue Service pur23 suant to subparagraph (A) by reason of a 

24 claimed violation of section 5324 if the 

25 property to be seized was derived from an 

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1 illegal source or the funds were structured 

2 for the purpose of concealing the violation of 

3 a criminal law or regulation other than sec4 tion 5324. 

5 ‘‘(ii) NOTICE.—Not later than 30 days 

6 after property is seized by the Internal Rev7 enue Service pursuant to subparagraph (A), 

8 the Internal Revenue Service shall— 

9 ‘‘(I) make a good faith effort to 

10 find all persons with an ownership in11 terest in such property; and 

12 ‘‘(II) provide each such person 

13 with a notice of the person’s rights 

14 under clause (iv). 

15 ‘‘(iii) EXTENSION OF NOTICE UNDER

16 CERTAIN CIRCUMSTANCES.—The Internal 

17 Revenue Service may apply to a court of 

18 competent jurisdiction for one 30-day exten19 sion of the notice requirement under clause 

20 (ii) if the Internal Revenue Service can es21 tablish probable cause of an imminent 

22 threat to national security or personal safe23 ty necessitating such extension. 

24 ‘‘(iv) POST-SEIZURE HEARING.—If a 

25 person with a property interest in property 

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1 seized pursuant to subparagraph (A) by the 

2 Internal Revenue Service requests a hearing 

3 by a court of competent jurisdiction within 

4 30 days after the date on which notice is 

5 provided under subclause (ii), such property 

6 shall be returned unless the court holds an 

7 adversarial hearing and finds within 30 

8 days of such request (or such longer period 

9 as the court may provide, but only on re10 quest of an interested party) that there is 

11 probable cause to believe that there is a vio12 lation of section 5324 involving such prop13 erty and probable cause to believe that the 

14 property to be seized was derived from an 

15 illegal source or the funds were structured 

16 for the purpose of concealing the violation of 

17 a criminal law or regulation other than sec18 tion 5324.’’. 

19 SEC. 3. EXCLUSION OF INTEREST RECEIVED IN ACTION TO 

20 RECOVER PROPERTY SEIZED BY THE INTER21 NAL REVENUE SERVICE BASED ON STRUC22 TURING TRANSACTION. 

23 (a) IN GENERAL.—Part III of subchapter B of chapter 

24 1 of the Internal Revenue Code of 1986 is amended by in25 serting before section 140 the following new section: 

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1 ‘‘SEC. 139G. INTEREST RECEIVED IN ACTION TO RECOVER 

2 PROPERTY SEIZED BY THE INTERNAL REV3 ENUE SERVICE BASED ON STRUCTURING 

4 TRANSACTION. 

5 ‘‘Gross income shall not include any interest received 

6 from the Federal Government in connection with an action 

7 to recover property seized by the Internal Revenue Service 

8 pursuant to section 5317(c)(2) of title 31, United States 

9 Code, by reason of a claimed violation of section 5324 of 

10 such title.’’. 

11 (b) CLERICAL AMENDMENT.—The table of sections for 

12 part III of subchapter B of chapter 1 of such Code is amend13 ed by inserting before the item relating to section 140 the 

14 following new item: 

‘‘Sec. 139G. Interest received in action to recover property seized by the Internal 

Revenue Service based on structuring transaction.’’. 

15 (c) EFFECTIVE DATE.—The amendments made by this 

16 section shall apply to interest received on or after the date 

17 of the enactment of this Act. 

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Union Calendar No. 566 

114TH CONGRESS 

2D SESSION H. R. 5523 

[Report No. 114–730, Part I] 

A BILL 

To amend title 31, United States Code, to prohibit 

other purposes. a post-seizure hearing for such seizures, and for criminal law or regulation, to require notice and purpose of concealing the violation of another legal source or the funds were structured for the less the property to be seized derived from an ilseizures relating to a structuring transaction unthe Internal Revenue Service from carrying out 

SEPTEMBER 9, 2016 

Reported from the Committee on Ways and Means with 

an amendment 

SEPTEMBER 9, 2016 

The Committee on Financial Services discharged; comState of the Union and ordered to be printed mitted to the Committee of the Whole House on the 

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