H.R. 1219 – Clyde-Hirsch-Sowers RESPECT Act

AI-Generated Summary

Updated April 14, 2026 at 1:49 AM UTC

The Clyde‑Hirsch‑Sowers RESPECT Act changes the rules for IRS civil asset forfeiture when a structuring transaction is involved. It limits the IRS to seize property only if the assets came from an illegal source or were used to hide another crime, and it adds notice and hearing requirements for anyone whose property is taken. The bill also makes any interest earned on recovered property tax‑free.

Key Provisions

The IRS may seize property related to a structuring transaction only if the property was derived from an illegal source or the funds were structured to conceal a violation of a criminal law other than the structuring offense.
Within 30 days of a seizure, the IRS must try to locate all owners and send them a notice of the seizure and their rights.
The IRS can request one 30‑day extension of the notice period if it shows probable cause of an imminent national‑security or personal‑safety threat.
Any owner who requests a post‑seizure 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 was illegal or used to conceal another crime.
Interest earned on money recovered from a seizure under these rules is excluded from gross income and therefore not taxable.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action

HouseIntro Referral Latest Action

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.

Ways and Means Committee

February 14, 2019

View full timeline

HouseIntro Referral

Introduced in House

February 14, 2019

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.

Ways and Means Committee

February 14, 2019

Bill Text

Latest available legislative text

Reading Mode

Raw Text PDF XML

Introduced in HouseIssued February 14, 2019

I

116th CONGRESS

1st Session

H. R. 1219

IN THE HOUSE OF REPRESENTATIVES

February 14, 2019

Mr. Collins of Georgia (for himself, Mr. Kelly of Pennsylvania, Mr. Smith of Missouri, and Mr. Lewis) 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 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:

139H.

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. 139H. 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.