Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Clyde-Hirsch-Sowers 
RESPECT Act’’ or the ‘‘Restraining Excessive Seizure of 
Property through the Exploitation of Civil Asset Forfeiture 
Tools Act’’. 
SEC. 2. INTERNAL REVENUE SERVICE SEIZURE REQUIRE-
MENTS WITH RESPECT TO STRUCTURING 
TRANSACTIONS. 
Section 5317(c)(2) of title 31, United States Code, is 
amended— 
(1) by striking ‘‘Any property’’ and inserting the 
following: 
‘‘(A) IN GENERAL.—Any property’’; and 
(2) by adding at the end the following: 
‘‘(B) INTERNAL REVENUE SERVICE SEIZURE 
REQUIREMENTS WITH RESPECT TO STRUCTURING 
TRANSACTIONS.— 
‘‘(i) PROPERTY DERIVED FROM AN IL-
LEGAL
SOURCE.—Property may only be 
seized by the Internal Revenue Service pur-
suant to subparagraph (A) by reason of a 
claimed violation of section 5324 if the 
property to be seized was derived from an 
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illegal source or the funds were structured 
for the purpose of concealing the violation of 
a criminal law or regulation other than sec-
tion 5324. 
‘‘(ii) NOTICE.—Not later than 30 days 
after property is seized by the Internal Rev-
enue Service pursuant to subparagraph (A), 
the Internal Revenue Service shall— 
‘‘(I) make a good faith effort to 
find all persons with an ownership in-
terest in such property; and 
‘‘(II) provide each such person 
with a notice of the person’s rights 
under clause (iv). 
‘‘(iii) EXTENSION OF NOTICE UNDER 
CERTAIN
CIRCUMSTANCES.—The Internal 
Revenue Service may apply to a court of 
competent jurisdiction for one 30-day exten-
sion of the notice requirement under clause 
(ii) if the Internal Revenue Service can es-
tablish probable cause of an imminent 
threat to national security or personal safe-
ty necessitating such extension. 
‘‘(iv) POST-SEIZURE
HEARING.—If a 
person with a property interest in property 
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seized pursuant to subparagraph (A) by the 
Internal Revenue Service requests a hearing 
by a court of competent jurisdiction within 
30 days after the date on which notice is 
provided under subclause (ii), such property 
shall be returned unless the court holds an 
adversarial hearing and finds within 30 
days of such request (or such longer period 
as the court may provide, but only on re-
quest of an interested party) that there is 
probable cause to believe that there is a vio-
lation of section 5324 involving such prop-
erty and probable cause to believe that the 
property to be seized was derived from an 
illegal source or the funds were structured 
for the purpose of concealing the violation of 
a criminal law or regulation other than sec-
tion 5324.’’. 
SEC. 3. EXCLUSION OF INTEREST RECEIVED IN ACTION TO 
RECOVER PROPERTY SEIZED BY THE INTER-
NAL REVENUE SERVICE BASED ON STRUC-
TURING TRANSACTION. 
(a) IN GENERAL.—Part III of subchapter B of chapter 
1 of the Internal Revenue Code of 1986 is amended by in-
serting before section 140 the following new section: 
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‘‘SEC. 139G. INTEREST RECEIVED IN ACTION TO RECOVER 
PROPERTY SEIZED BY THE INTERNAL REV-
ENUE SERVICE BASED ON STRUCTURING 
TRANSACTION. 
‘‘Gross income shall not include any interest received 
from the Federal Government in connection with an action 
to recover property seized by the Internal Revenue Service 
pursuant to section 5317(c)(2) of title 31, United States 
Code, by reason of a claimed violation of section 5324 of 
such title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections for 
part III of subchapter B of chapter 1 of such Code is amend-
ed by inserting before the item relating to section 140 the 
following new item: 
‘‘Sec. 139G. Interest received in action to recover property seized by the Internal 
Revenue Service based on structuring transaction.’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall apply to interest received on or after the date 
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 
the Internal Revenue Service from carrying out 
seizures relating to a structuring transaction un-
less the property to be seized derived from an il-
legal 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. 
SEPTEMBER 9, 2016 
Reported from the Committee on Ways and Means with 
an amendment 
SEPTEMBER 9, 2016 
The Committee on Financial Services discharged; com-
mitted to the Committee of the Whole House on the 
State of the Union and ordered to be printed 
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