I 

114TH CONGRESS 

2D SESSION H. R. 5523 

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 

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. 

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


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1 SECTION 1. SHORT TITLE. 

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

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

4 Property through the Exploitation of Civil Asset For5 feiture Tools Act’’. 

6 SEC. 2. INTERNAL REVENUE SERVICE SEIZURE REQUIRE7 MENTS WITH RESPECT TO STRUCTURING 

8 TRANSACTIONS. 

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

10 is amended— 

11 (1) by striking ‘‘Any property’’ and inserting 

12 the following: 

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

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

15 ‘‘(B) INTERNAL REVENUE SERVICE SEI16 ZURE REQUIREMENTS WITH RESPECT TO

17 STRUCTURING TRANSACTIONS.— 

18 ‘‘(i) PROPERTY DERIVED FROM AN IL19 LEGAL SOURCE.—Property may only be 

20 seized by the Internal Revenue Service 

21 pursuant to subparagraph (A) by reason of 

22 a claimed violation of section 5324 if the 

23 property to be seized was derived from an 

24 illegal source or the funds were structured 

25 for the purpose of concealing the violation 


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1 of a criminal law or regulation other than 

2 section 5324. 

3 ‘‘(ii) NOTICE.—Not later than 30 

4 days after property is seized by the Inter5 nal Revenue Service pursuant to subpara6 graph (A), the Internal Revenue Service 

7 shall— 

8 ‘‘(I) make a good faith effort to 

9 find all persons with an ownership in10 terest in such property; and 

11 ‘‘(II) provide each such person 

12 with a notice of the person’s rights 

13 under clause (iv). 

14 ‘‘(iii) EXTENSION OF NOTICE UNDER

15 CERTAIN CIRCUMSTANCES.—The Internal 

16 Revenue Service may apply to a court of 

17 competent jurisdiction for one 30-day ex18 tension of the notice requirement under 

19 clause (ii) if the Internal Revenue Service 

20 can establish probable cause of an immi21 nent threat to national security or personal 

22 safety necessitating such extension. 

23 ‘‘(iv) POST-SEIZURE HEARING.—If a 

24 person with a property interest in property 

25 seized pursuant to subparagraph (A) by 


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1 the Internal Revenue Service requests a 

2 hearing by a court of competent jurisdic3 tion within 30 days after the date on which 

4 notice is provided under subclause (ii), 

5 such property shall be returned unless the 

6 court holds an adversarial hearing and 

7 finds within 30 days of such request (or 

8 such longer period as the court may pro9 vide, but only on request of an interested 

10 party) that there is probable cause to be11 lieve that there is a violation of section 

12 5324 involving such property and probable 

13 cause to believe that the property to be 

14 seized was derived from an illegal source or 

15 the funds were structured for the purpose 

16 of concealing the violation of a criminal 

17 law or regulation other than section 

18 5324.’’. 

19 SEC. 3. EXCLUSION OF INTEREST PAID IN ACTION TO RE20 COVER PROPERTY SEIZED BY THE I.R.S. 

21 BASED ON STRUCTURING TRANSACTION. 

22 (a) IN GENERAL.—Part III of subchapter B of chap23 ter 1 of the Internal Revenue Code of 1986 is amended 

24 by inserting before section 140 the following new section: 


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1 ‘‘SEC. 139F. INTEREST PAID IN ACTION TO RECOVER PROP2 ERTY SEIZED BY THE I.R.S. BASED ON STRUC3 TURING TRANSACTION. 

4 ‘‘Gross income shall not include any interest received 

5 under section 5317(c)(2) of title 31, United States Code, 

6 with respect to an action to recover property seized by the 

7 Internal Revenue Service pursuant to section 

8 5317(c)(2)(A) of such title by reason of a claimed violation 

9 of section 5324 of such title.’’. 

10 (b) CLERICAL AMENDMENT.—The table of sections 

11 for part III of subchapter B of chapter 1 of such Code 

12 is amended by inserting before the item relating to section 

13 140 the following new item: 

‘‘Sec. 139F. Interest paid in action to recover property seized by the I.R.S. 

based on structuring transaction.’’. 

14 (c) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to interest received on or after the 

16 date of the enactment of this Act. 

Æ 


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