Restraining Excessive Seizure of Property through the Exploitation of Civil Asset Forfeiture Tools Act

Bill: 115-hr-1843
Sponsor: full_name: Rep. Roskam, Peter J. [R-IL-6]
Introduced: 2017-03-30
Policy area: Taxation
Subjects: Bank accounts, deposits, capital

Business records

Civil actions and liability

Fraud offenses and financial crimes

Income tax exclusion

Interest, dividends, interest rates

Tax administration and collection, taxpayers
Latest action: action_date: 2017-09-06
text: Received in the Senate and Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2017-03-30
action_desc: Introduced in House
text: <p><b>Clyde-Hirsch-Sowers RESPECT Act or the Restraining Excessive Seizure of Property through the Exploitation of Civil Asset Forfeiture Tools Act </b></p> <p>This bill revises the authority and procedures that the Internal Revenue Service (IRS) uses to seize property that has been structured to avoid Bank Secrecy Act (BSA) reporting requirements. </p> <p> The IRS may only seize property it suspects has been structured to avoid BSA reporting requirements if the property 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 structuring transactions to evade BSA reporting requirements. </p> <p>Within 30 days of seizing property, the IRS must: (1) make a good faith effort to find all owners of the property, and (2) notify the owners of the post-seizure hearing rights established by this bill. The IRS may apply to a court for one 30-day extension of the notice requirement if it can establish probable cause of an imminent threat to national security or personal safety. </p> <p>If the owner of the property requests a court hearing within 30 days after the date on which notice is provided, the property must be returned unless the court holds a hearing within 30 days after notice is provided and finds that there is probable cause to believe that the property was derived from an illegal source or the funds were structured to conceal the violation of a criminal law or regulation other than a structuring violation. </p> <p> The bill amends the Internal Revenue Code to exclude from gross income any interest received from the federal government with respect to an action to recover property seized by the IRS pursuant to a claimed violation of the structuring provisions of the BSA. </p>

action_date: 2017-09-05
action_desc: Passed House amended
text: <p><b>Clyde-Hirsch-Sowers RESPECT Act or the Restraining Excessive Seizure of Property through the Exploitation of Civil Asset Forfeiture Tools Act </b></p> <p>(Sec. 2) This bill revises the authority and procedures that the Internal Revenue Service (IRS) uses to seize property that has been structured to avoid Bank Secrecy Act (BSA) reporting requirements. </p> <p> The IRS may only seize property it suspects has been structured to avoid BSA reporting requirements if the property 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 structuring transactions to evade BSA reporting requirements. </p> <p>Within 30 days of seizing property, the IRS must: (1) make a good faith effort to find all owners of the property, and (2) notify the owners of the seizure and the post-seizure hearing rights established by this bill. The IRS may apply to a court for one 30-day extension of the notice requirement if it can establish probable cause of an imminent threat to national security or personal safety. </p> <p>If the owner of the property requests a court hearing within 30 days after the date on which notice is provided, the property must be returned unless the court holds a hearing within 30 days after notice is provided and finds that there is probable cause to believe that the property was derived from an illegal source or the funds were structured to conceal the violation of a criminal law or regulation other than a structuring violation. </p> <p> (Sec. 3) The bill amends the Internal Revenue Code to exclude from gross income any interest received from the federal government with respect to an action to recover property seized by the IRS pursuant to a claimed violation of the structuring provisions of the BSA. </p>

tv_txt: I 115th CONGRESS 1st Session H. R. 1843 IN THE HOUSE OF REPRESENTATIVES March 30, 2017 Mr. Roskam (for himself, Mr. Crowley , Mr. Holding , Mr. Reed , Mr. Marchant , Mr. Buchanan , Mr. Meehan , Mr. Renacci , Mr. Smith of Missouri , Mr. Rice of South Carolina , Mr. Collins of Georgia , and Mr. Harris ) 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. 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 . 2. Internal Revenue Service seizure requirements 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 illegal source Property may only be seized by the Internal Revenue Service pursuant to subparagraph (A) by reason of a claimed violation of section 5324 if 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 section 5324. (ii) Notice Not later than 30 days after property is seized by the Internal Revenue Service pursuant to subparagraph (A), the Internal Revenue Service shall— (I) make a good faith effort to find all persons with an ownership interest 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 extension of the notice requirement under clause (ii) if the Internal Revenue Service can establish probable cause of an imminent threat to national security or personal safety necessitating such extension. (iv) Post-seizure hearing If a person with a property interest in property 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 request of an interested party) that there is probable cause to believe that there is a violation of section 5324 involving such property 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 section 5324. . 3. Exclusion of interest received in action to recover property seized by the Internal Revenue Service based on structuring transaction (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139G. Interest received in action to recover property seized by the Internal Revenue 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 amended 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.

tv_txt: I 115th CONGRESS 1st Session H. R. 1843 IN THE HOUSE OF REPRESENTATIVES AN ACT 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. 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 . 2. Internal Revenue Service seizure requirements 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 illegal source Property may only be seized by the Internal Revenue Service pursuant to subparagraph (A) by reason of a claimed violation of section 5324 if 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 section 5324. (ii) Notice Not later than 30 days after property is seized by the Internal Revenue Service pursuant to subparagraph (A), the Internal Revenue Service shall— (I) make a good faith effort to find all persons with an ownership interest in such property; and (II) provide each such person with a notice of the seizure and 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 extension of the notice requirement under clause (ii) if the Internal Revenue Service can establish probable cause of an imminent threat to national security or personal safety necessitating such extension. (iv) Post-seizure hearing If a person with a property interest in property 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 request of an interested party) that there is probable cause to believe that there is a violation of section 5324 involving such property 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 section 5324. . 3. Exclusion of interest received in action to recover property seized by the Internal Revenue Service based on structuring transaction (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139G. Interest received in action to recover property seized by the Internal Revenue 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 amended 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.

Passed the House of Representatives September 5, 2017. Karen L. Haas, Clerk.

tv_txt: IIB 115th CONGRESS 1st Session H. R. 1843 IN THE SENATE OF THE UNITED STATES September 6, 2017 Received; read twice and referred to the Committee on Finance AN ACT 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. 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 . 2. Internal Revenue Service seizure requirements 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 illegal source Property may only be seized by the Internal Revenue Service pursuant to subparagraph (A) by reason of a claimed violation of section 5324 if 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 section 5324. (ii) Notice Not later than 30 days after property is seized by the Internal Revenue Service pursuant to subparagraph (A), the Internal Revenue Service shall— (I) make a good faith effort to find all persons with an ownership interest in such property; and (II) provide each such person with a notice of the seizure and 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 extension of the notice requirement under clause (ii) if the Internal Revenue Service can establish probable cause of an imminent threat to national security or personal safety necessitating such extension. (iv) Post-seizure hearing If a person with a property interest in property 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 request of an interested party) that there is probable cause to believe that there is a violation of section 5324 involving such property 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 section 5324. . 3. Exclusion of interest received in action to recover property seized by the Internal Revenue Service based on structuring transaction (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139G. Interest received in action to recover property seized by the Internal Revenue 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 amended 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.

Passed the House of Representatives September 5, 2017. Karen L. Haas, Clerk

tv_txt: IB Union Calendar No. 205 115th CONGRESS 1st Session H. R. 1843 [Report No. 115–286, Part I] IN THE HOUSE OF REPRESENTATIVES March 30, 2017 Mr. Roskam (for himself, Mr. Crowley , Mr. Holding , Mr. Reed , Mr. Marchant , Mr. Buchanan , Mr. Meehan , Mr. Renacci , Mr. Smith of Missouri , Mr. Rice of South Carolina , Mr. Collins of Georgia , and Mr. Harris ) 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 5, 2017 Additional sponsors: Mr. Kelly of Pennsylvania , Mr. Bishop of Michigan , and Mr. Curbelo of Florida September 5, 2017 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 5, 2017 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 March 30, 2017 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. 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 . 2. Internal Revenue Service seizure requirements 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 illegal source Property may only be seized by the Internal Revenue Service pursuant to subparagraph (A) by reason of a claimed violation of section 5324 if 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 section 5324. (ii) Notice Not later than 30 days after property is seized by the Internal Revenue Service pursuant to subparagraph (A), the Internal Revenue Service shall— (I) make a good faith effort to find all persons with an ownership interest in such property; and (II) provide each such person with a notice of the seizure and 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 extension of the notice requirement under clause (ii) if the Internal Revenue Service can establish probable cause of an imminent threat to national security or personal safety necessitating such extension. (iv) Post-seizure hearing If a person with a property interest in property 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 request of an interested party) that there is probable cause to believe that there is a violation of section 5324 involving such property 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 section 5324. . 3. Exclusion of interest received in action to recover property seized by the Internal Revenue Service based on structuring transaction (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 140 the following new section: 139G. Interest received in action to recover property seized by the Internal Revenue 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 amended 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.

September 5, 2017 Reported from the Committee on Ways and Means with an amendment September 5, 2017 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