[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 824 Introduced in Senate (IS)]
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115th CONGRESS
1st Session
S. 824
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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IN THE SENATE OF THE UNITED STATES
April 4, 2017
Mr. Scott (for himself, Mr. Brown, Mr. Isakson, and Mr. Warner)
introduced the following bill; which was read twice and referred to the
Committee on Finance
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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.
Be it enacted by the Senate and House of Representatives 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 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.''.
SEC. 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:
``SEC. 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.
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