Privacy Act; implementation,
[Federal Register: December 23, 1998 (Volume 63, Number 246)]
[Proposed Rules]
[Page 71050-71052]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23de98-22]
DEPARTMENT OF THE TREASURY
Office of the Secretary
31 CFR Part 1
Privacy Act; Implementation
AGENCY: Internal Revenue Service, Department of the Treasury.
ACTION: Proposed rule.
SUMMARY: In accordance with the requirements of the Privacy Act of 1974, 5 U.S.C. 552a, as amended, the Department of the Treasury, Internal Revenue Service (IRS) gives notice of a proposed amendment to exempt a new system of records, the IRS Audit Trail Lead Analysis System--Treasury/IRS 34.020, from certain provisions of the Privacy Act. The exemptions are intended to comply with the legal prohibitions against the disclosure of certain kinds of information and to protect certain information, about individuals, maintained in this system of records.
[[Page 71051]]
DATES: Comments must be received no later than January 22, 1999.
ADDRESSES: Please submit comments to Office of Governmental Liaison and Disclosure, Internal Revenue Service, 1111 Constitution Ave., NW, Washington, DC 20220. Persons wishing to review the comments should call 202-622-6240 to make an appointment with the Office of Governmental Liaison and Disclosure.
FOR FURTHER INFORMATION CONTACT: Michael Sincavage, Director, 6103/ Privacy Operations, Governmental Liaison and Disclosure, Internal Revenue Service, at 202-622-6240.
SUPPLEMENTARY INFORMATION: Under 5 U.S.C. 552a(k)(2), the head of an agency may promulgate rules to exempt a system of records from certain provisions of 5 U.S.C. 552a, if the system is investigatory material compiled for law enforcement purposes. The IRS compiles records in this system for law enforcement purposes. Treasury/IRS 34.020--IRS Audit Trail Lead Analysis System (ATLAS) contains records that enable the IRS to investigate and monitor the activities of individuals who access its information systems which process taxpayer information. The IRS will use the information to ensure the protection and confidentiality of tax returns and return information for the detection and deterrence of unauthorized access and abuse of electronic records. The ATLAS electronically identifies possible unauthorized accesses to taxpayer information through matching of records using search criteria indicative of probable unauthorized accesses and/or fraudulent use of IRS information systems. ATLAS then generates leads for the Office of Chief Inspector/Treasury Office of Inspector General for Tax Administration for evaluation and analysis. After the Office of Chief Inspector/Treasury Office of Inspector General for Tax Administration completes evaluation and analysis of the leads, the information received from ATLAS will be disposed of as appropriate in one of the following ways: (1) Information obtained from this application will become part of Conduct Investigation Files, Inspection (Treasury/IRS 60.003); Miscellaneous Information Files, Inspection (Treasury/IRS 60.007); and Special Inquiry Investigation Files (Treasury/IRS 60.009); and will be retained in accordance with procedures established in Records Disposition Handbooks, IRM 1(15)59.1 through IRM 1(15)59.32, and IRM Exhibit (10)100-2; (2) information relevant to an investigation that results in judicial or administrative action is retained for 10 years after the date of the action; or (3) information obtained from this computer match that does not become part of the files in (1) above will not be retained in any form searchable by individual identifier. Summary or statistical data may be retained as part of audit or integrity project workpapers.
The IRS is hereby giving notice of a proposed rule to exempt Treasury/IRS 34.020 (ATLAS) from certain provisions of the Privacy Act of 1974 pursuant to 5 U.S.C. 552a(k)(2). The proposed exemption is from provisions 552a (c)(3), (d)(1), (d)(2), (d)(3), (d)(4), (e)(1), (e)(4) (G), (H), (I) and (f) because the system contains investigatory material compiled for law enforcement purposes. The data will be utilized to enforce 26 U.S.C. 7213, 7213A, 7214, and 18 U.S.C. 1030(a)(2)(B). The following are the reasons why this system of records maintained by the IRS is exempt pursuant to 5 U.S.C. 552a(k)(2) of the Privacy Act of 1974.
(1) 5 U.S.C. 552a(c)(3). This provision of the Privacy Act provides for the release of the disclosure accounting required by 5 U.S.C. 552a(c) (1) and (2) to the individual named in the record at his/her request. The reasons for exempting this system of records from the foregoing provisions are:
(i) The release of disclosure accounting would put the subject of an investigation on notice that an investigation exists and that such person is the subject of that investigation.
(ii) Such release would provide the subject of an investigation with an accurate accounting of the date, nature, and purpose of each disclosure and the name and address of the person or agency to whom the disclosure was made. The release of such information to the subject of an investigation would provide the subject with significant information concerning the nature of the investigation and could result in the altering or destruction of documentary evidence, the improper influencing of witnesses, and other activities that could impede or compromise the investigation.
(iii) Release to the individual of the disclosure accounting would alert the individual as to which agencies were investigating the subject and the scope of the investigation and could aid the individual in impeding or compromising investigations by those agencies.
(2) 5 U.S.C. 552a (d)(1), (d)(2), (d)(3), (d)(4), (e)(4)(G), (H), and (f). These provisions of the Privacy Act relate to an individual's right to be notified of the existence of records pertaining to such individual; requirements for identifying an individual who requested access to records; the agency procedures relating to access to records and the contest of the information contained in such records and the civil remedies available to the individual in the event of adverse determinations by an agency concerning access to or amendment of information contained in record systems. The reasons for exempting this system of records from the foregoing provisions are as follows: To notify an individual at the individual's request of the existence of an investigative file pertaining to such individual or to grant access to an investigative file pertaining to such individuals could interfere with investigative and enforcement proceedings; deprive co-defendants of a right to a fair trial or an impartial adjudication; constitute an unwarranted invasion of the personal privacy of others; disclose the identity of confidential sources and reveal confidential information supplied by such sources; and, disclose investigative techniques and procedures.
(3) 5 U.S.C. 552a(e)(4)(I). This provision of the Privacy Act requires the publication of the categories of sources of records in each system of records. In cases where an exemption from this provision has been claimed, the reasons are as follows:
(i) Revealing categories of sources of information could disclose investigative techniques and procedures;
(ii) Revealing categories of sources of information could cause sources who supply information to investigators to refrain from giving such information because of fear of reprisal, or fear of breach of promises of anonymity and confidentiality.
(4) 5 U.S.C. 552a(e)(1). This provision of the Privacy Act requires each agency to maintain in its records only such information about an individual as is relevant and necessary to accomplish a purpose of the agency required to be accomplished by statute or executive order. The reasons for exempting this system of records from the foregoing provision are as follows:
(i) The IRS will limit its inquiries to information that is necessary for the enforcement and administration of computer security laws and tax laws. However, an exemption from the foregoing provision is needed because, particularly in the early stages of an investigation, it is not possible to determine the relevance or necessity of specific information.
(ii) Relevance and necessity are questions of judgment and timing. What appears relevant and necessary when collected may subsequently be determined to be irrelevant or
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unnecessary. It is only after the information is evaluated that the relevance and necessity of such information can be established with certainty.
(iii) When information is received by the IRS relating to violations of law within the jurisdiction of other agencies, the Service processes this information through the Service systems in order to forward the material to the appropriate agencies.
As required by Executive Order 12866, it has been determined that this proposed rule is not a significant regulatory action, and therefore, does not require a regulatory impact analysis.
Pursuant to the requirements of the Regulatory Flexibility Act, 5 U.S.C. 601-612, it is hereby certified that these regulations will not significantly affect a substantial number of small entities. The proposed rule imposes no duties or obligations on small entities.
In accordance with the provisions of the Paperwork Reduction Act of 1995, the Department of the Treasury has determined that this proposed rule would not impose new recordkeeping, application, reporting, or other types of information collection requirements.
List of Subjects in 31 CFR Part 1
Privacy.
Part 1 of Title 31 of the Code of Federal Regulations is amended as follows:
PART 1--[AMENDED]
-
The authority citation for part 1 continues to read as follows:
Authority: 5 U.S.C. 301, 31 U.S.C. 321, subpart A also issued under 5 U.S.C. 552, as amended. Subpart C also issued under 5 U.S.C. 552a.
Sec. 1.36 [Amended]
-
Section 1.36, under the heading ``The Internal Revenue Service,'' is amended by removing in paragraph (a)(1) the entry ``Integrated Data Retrieval System (IDRS) Security Files--34.018'' and in paragraph (b)(1) by adding the following entry in numerical order to read as follows: * * * * *
(b) * * *
(1) * * *
Name of system
No.
*
*
*
*
* Audit Trail Lead Analysis System............................. 34.020
*
*
*
*
*
* * * * *
Dated: November 10, 1998. Shelia Y. McCann, Deputy Assistant Secretary (Administration).
[FR Doc. 98-33905Filed12-22-98; 8:45 am]
BILLING CODE 4830-01-P
