Legislative update: Ways and Means approves property seizure bill

U.S. Ways and Means approves property seizure bill

The House Ways and Means Committee today approved by voice vote H.R. 5523, the Clyde-Hirsch-Sowers RESPECT Act or the Restraining Excessive Seizure of Property through the Exploitation of Civil Asset Forfeiture Tools Act.

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The bill must next be considered by the full House of Representatives. A vote has not yet been scheduled.

H.R. 5523

The bi-partisan bill would:

  • Prohibit the IRS from conducting seizures relating to a structuring transaction unless the property to be seized was derived from an illegal source, or the funds were structured for the purpose of concealing the violation of another criminal law or regulation
  • Require the IRS to notify all individuals with an ownership interest in the property of their rights to a hearing within 30 days of seizure (unless granted an extension by a court)
  • Provide individuals whose property has been seized with a post-seizure hearing (upon request) to be held within 30 days for the purpose of determining if there is reasonable 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 another criminal law or regulation
  • Clarify that any interest received by an individual by reason of a finding of a failure to show reasonable cause will not be included in gross income

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