H.R. 1843House115th Congress (2017-2019)Passed House

Clyde-Hirsch-Sowers RESPECT Act

Introduced March 30, 2017

AI-Generated Summary

Updated April 15, 2026 at 2:26 PM UTC

The Clyde‑Hirsch‑Sowers RESPECT Act limits the IRS’s ability to seize property in structuring cases. It says the agency can only take assets if they came from an illegal source or were used to hide another crime, and it adds requirements for notice, a chance for a hearing, and limits on interest income from recovered assets. The changes affect anyone whose property is seized by the IRS and the IRS itself.

Key Provisions

  • The IRS may seize property in a structuring case only if the property was derived from an illegal source or the funds were used to conceal a violation of a criminal law other than the structuring law.
  • Within 30 days of a seizure, the IRS must try to locate all owners and send each a notice of the seizure and their rights.
  • The IRS can request one 30‑day extension of the notice deadline if it shows probable cause of an imminent national‑security or personal‑safety threat.
  • Any owner who requests a hearing within 30 days of receiving notice can have the property returned unless a court, after an adversarial hearing, finds probable cause of a violation and that the property meets the illegal‑source or concealment test.
  • Interest received from the federal government in a lawsuit to recover property seized under these rules is excluded from gross income for tax purposes.

Legislative Activity

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13 earlier actions
SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on Finance.

September 6, 2017

View full timeline
HouseIntro Referral

Introduced in House

March 30, 2017

HouseIntro Referral

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.

March 30, 2017

HouseCommittee

Committee Consideration and Mark-up Session Held.

July 13, 2017

HouseCommittee

Ordered to be Reported (Amended) by Voice Vote.

July 13, 2017

HouseCommittee

Reported (Amended) by the Committee on Ways and Means. H. Rept. 115-286, Part I.

September 5, 2017

HouseCommittee

Committee on Financial Services discharged.

September 5, 2017

HouseCalendars

Placed on the Union Calendar, Calendar No. 205.

September 5, 2017

HouseFloor

Mr. Roskam moved to suspend the rules and pass the bill, as amended.

September 5, 2017 • 5:00 PM

HouseFloor

Considered under suspension of the rules. (consideration: CR H6634-6637)

September 5, 2017 • 5:00 PM

HouseFloor

DEBATE - The House proceeded with forty minutes of debate on H.R. 1843.

September 5, 2017 • 5:01 PM

HouseFloor

Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H6634)

September 5, 2017 • 5:23 PM

HouseFloor

On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H6634)

September 5, 2017 • 5:23 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

September 5, 2017 • 5:23 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on Finance.

September 6, 2017

Floor Debate

23 members

What members said about H.R. 1843 on the floor

12 Republicans11 Democrats
John Abney Culberson
Rep. John Abney CulbersonR-TX-7 · Sep 12, 2017

Mr. Speaker, I ask unanimous consent that all Members may have 5 legislative days in which to revise and extend their remarks and to include extraneous material on the further consideration of H.R.…

Jose E. Serrano
Rep. Jose E. SerranoD-NY-15 · Sep 12, 2017

Mr. Chairman, I am in support of the en bloc amendments. We have worked on it jointly, and I support all of the amendments that are included in the en bloc. Mr. Chairman, I yield 1 minute to the…

Peter J. Roskam
Rep. Peter J. RoskamR-IL-6 · Sep 5, 2017

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 1843) to amend title 31, United States Code, to prohibit the Internal Revenue Service from carrying out seizures relating to a…

Steve Cohen
Rep. Steve CohenD-TN-9 · Sep 12, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I rise today to speak in support of our bipartisan amendment, which would increase Legal Services funding by $10 million. I am willing to…

Ken Buck
Rep. Ken BuckR-CO-4 · Sep 12, 2017

Mr. Chair, I thank the Chairman for the opportunity to speak about my amendment to the Commerce, Justice, Science, and Related Agencies Division of H.R. 3354. Mr. Chair, the right to bear arms is…

Show 8 more
Richard E. Neal
Rep. Richard E. NealD-MA-1 · Sep 5, 2017

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I stand today in support of H.R. 1843, the Restraining Excessive Seizure of Property through the Exploitation of Civil Asset…

Jamie Raskin
Rep. Jamie RaskinD-MD-8 · Sep 12, 2017

Mr. Chair, I have an amendment at the desk. Mr. Chairman, I also want to thank my colleagues, Mr. Sensenbrenner, Mr. Conyers, and Mr. Mooney, for cosponsoring and supporting this amendment. It is a…

Peter J. Roskam
Rep. Peter J. RoskamR-IL-6 · Sep 12, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I yield myself such time as I may consume. Mr. Chairman, let me tell you a quick story. Andrew Clyde served three combat tours in Iraq,…

Bill Pascrell, Jr.
Rep. Bill Pascrell, Jr.D-NJ-9 · Sep 12, 2017

Mr. Chair, I have an amendment at the desk. Mr. Chairman, I rise today, once again, to highlight the hypocrisy reflected here of the party that claims to be the law- and-order party, because, once…

Jacky Rosen
Rep. Jacky RosenD-NV-3 · Sep 12, 2017

Mr. Chairman, I rise in support of my colleague Congresswoman Julia Brownley's amendment to increase funding for veterans treatment courts. Veterans courts keep our heroes struggling with addiction…

Joseph Crowley
Rep. Joseph CrowleyD-NY-14 · Sep 5, 2017

Mr. Speaker, I thank the gentleman from Massachusetts for yielding me this time, and I want to thank, as well, the cosponsor--actually, the lead sponsor--Mr. Roskam, for his work here today. Today is…

Lee M. Zeldin
Rep. Lee M. ZeldinR-NY-1 · Sep 12, 2017

Mr. Chair, I have an amendment at the desk. Mr. Chairman, I rise in support of my amendment to H.R. 3354 on behalf of the hardworking fishermen of Long Island and our entire region who are suffering…

Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · Sep 12, 2017

Mr. Chair, thank you for this opportunity to discuss Amendment 108 to the ``CJS Appropriation Act of 2017''. This amendment will save thousands of lives within our youth population by decreasing our…

Show 11 more
Glenn Grothman
Rep. Glenn GrothmanR-WI-6 · Sep 12, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I rise in support of my amendment to H.R. 3354. Since we last met, we began spending, I guess, a new $15 billion on the tragedies in…

Val Butler Demings
Rep. Val Butler DemingsD-FL-10 · Sep 12, 2017

Mr. Chair, I rise today in support of the Minority Business Development Agency, the MBDA. My amendment, number 84, which is included in the en bloc amendment, would increase funding for the MBDA by…

David G. Reichert
Rep. David G. ReichertR-WA-8 · Sep 12, 2017

I thank the chair for yielding and for all his hard work in working together with us to address the issue of gun crime in this country. As everyone knows, over the last several years especially,…

Bill Flores
Rep. Bill FloresR-TX-17 · Sep 12, 2017

Mr. Chair, as the designee of the gentleman from Alabama (Mr. Byrne), I have an amendment at the desk. Mr. Chair, I rise today to offer an amendment with my good friend from Alabama (Mr. Byrne), to…

Eleanor Holmes Norton
Rep. Eleanor Holmes NortonD-DC · Sep 12, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I yield myself such time as I may consume. My amendment prohibits the Federal Bureau of Prisons from using Federal funds to carry out a…

Andy Harris
Rep. Andy HarrisR-MD-1 · Sep 12, 2017

Mr. Chairman, I rise in opposition to the amendment. Mr. Chairman, everyone here appreciates concerns about the ways of discrimination. The question is how to collect the data in an efficient way,…

Doug Collins
Rep. Doug CollinsR-GA-9 · Sep 5, 2017

Mr. Speaker, I appreciate the chairman yielding me the time, the ranking member for being here, and also Mr. Roskam and Mr. Crowley, both for their sponsorship and cosponsorship of this legislation.…

Matt Gaetz
Rep. Matt GaetzR-FL-1 · Sep 12, 2017

Mr. Chairman, as the designee of the gentleman from Florida (Mr. Deutch), I have an amendment at the desk. Mr. Chairman, I offer this amendment on behalf of several of my colleagues from the Sunshine…

Tim Walberg
Rep. Tim WalbergR-MI-7 · Sep 12, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, in recent years, we have seen a growing number of instances where the government has confiscated private property from citizens and small…

Norma J. Torres
Rep. Norma J. TorresD-CA-35 · Sep 12, 2017

Mr. Chairman, I have an amendment at the desk. Mr. Chairman, I rise to offer my amendment to this appropriations bill. Mr. Chairman, since I have been in Congress, I have been working with…

Dana Rohrabacher
Rep. Dana RohrabacherR-CA-48 · Sep 12, 2017

Mr. Chairman, I rise in support of this amendment. Asset forfeiture is a crime against the American people, committed by their own government. This is absolutely opposite of what our people who wrote…

Bill Text

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Referred in SenateIssued September 6, 2017

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