IRS asset forfeiture in structuring cases would be reined in under a bill introduced by U.S. Rep. Peter Roskam (R-IL) that cleared the House on Thursday with unanimous support.
The Clyde-Hirsch-Sowers Restraining Excessive Seizure of Property through Exploitation of Civil Asset Forfeiture Tools (RESPECT) Act would prohibit IRS asset seizures in structuring cases unless property was derived from an illegal source or funds were structured to conceal illegal activity.
Roskam, the chairman of the House Ways and Means Subcommittee on Oversight, said that the House took a big step toward delivering justice for victims of IRS abuse with its unanimous approval of the bill.
“It’s clear to everyone involved that the IRS and DOJ abused their authority and took money from people who did nothing wrong,” Roskam said. “With (Thursday’s) legislation, we’re making sure they can never do it again.”
Roskam convened a subcommittee hearing in May on protecting small businesses from IRS abuse, hearing testimony from family business owners about the IRS and Department of Justice (DOJ) seizing assets based on allegations that they had “structured” cash deposits.
“I want to thank the Clyde, Hirsch, Sowers and Taylor families for their bravery and willingness to share their stories in the hopes of preventing future injustice,” Roskam said. “I’m glad we can finally put this ugly chapter to rest.”
Roskam also thanked U.S. Reps. Joseph Crowley (D-NY), a cosponsor of the bill, and John Lewis (D-GA), the ranking member of the Subcommittee on Oversight, for their support of the bipartisan bill.