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US S824

Clyde-Hirsch-Sowers RESPECT Act Restraining Excessive Seizure of Property through the Exploitation of Civil Asset Forfeiture Tools Act


summary

Introduced
04/04/2017
In Committee
04/04/2017
Crossed Over
Passed
Dead
12/31/2018

Introduced Session

115th Congress

Bill Summary

Clyde-Hirsch-Sowers RESPECT Act Restraining Excessive Seizure of Property through the Exploitation of Civil Asset Forfeiture Tools Act 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. 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. 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. 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. 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.

AI Summary

This bill, the Clyde-Hirsch-Sowers RESPECT Act or the Restraining Excessive Seizure of Property through the Exploitation of Civil Asset Forfeiture Tools Act, revises the authority and procedures that the Internal Revenue Service (IRS) uses to seize property suspected of being structured to avoid Bank Secrecy Act (BSA) reporting requirements. The IRS may only seize such property if it was derived from an illegal source or structured to conceal the violation of a criminal law or regulation other than the structuring violation itself. Within 30 days of a seizure, the IRS must make a good faith effort to notify all owners of the property and inform them of their post-seizure hearing rights. The IRS may obtain a 30-day extension of the notice requirement if it can show an imminent threat to national security or personal safety. If the property owner requests a hearing within 30 days, the property must be returned unless the court finds probable cause that the property was derived from an illegal source or structured to conceal a criminal violation. The bill also excludes from taxable income any interest received from the federal government in relation to an action to recover property seized by the IRS for a structuring violation.

Committee Categories

Budget and Finance

Sponsors (4)

Last Action

Read twice and referred to the Committee on Finance. (on 04/04/2017)

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