[Federal Register Volume 62, Number 219 (Thursday, November 13, 1997)]
[Rules and Regulations]
[Pages 60781-60783]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-29794]
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DEPARTMENT OF THE TREASURY
Departmental Offices
31 CFR Part 1
Privacy Act of 1974; Implementation
AGENCY: Departmental Offices, Treasury.
ACTION: Final Rule.
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SUMMARY: In accordance with the requirements of the Privacy Act of
1974, as amended, 5 U.S.C. 552a, the Department of the Treasury gives
notice of an amendment to exempt the system of records entitled,
``Integrated Data Retrieval System (IDRS) Security Files--Treasury/IRS
34.018,'' from certain provisions of the Privacy Act.
EFFECTIVE DATE: November 13, 1997.
FOR FURTHER INFORMATION CONTACT: Michael Sincavage, Director, 6103/
Privacy Operations, Governmental Liaison & Disclosure, Internal Revenue
Service at (202) 622-6240.
SUPPLEMENTARY INFORMATION: The Department of the Treasury published a
notice of a proposed rule exempting a system of records from certain
provisions of the Privacy Act of 1974, as Amended, at 60 FR 40797,
dated August 10, 1995. The Internal Revenue Service published an
alteration to the system notice on July 31, 1995, at 60 FR 30972.
Under 5 U.S.C. 552a(k)(2), the head of an agency may promulgate
rules to exempt any system of records within the agency from certain
provisions of the
[[Page 60782]]
Privacy Act of 1974 if the system is investigatory material compiled
for law enforcement purposes. The Internal Revenue Service has as its
principal function enforcement of the tax law of the United States.
System of records Treasury/IRS 34.018--Integrated Data Retrieval System
Security Files, contains records that enable the Service to investigate
and monitor the activities of its employees to ensure the protection
and confidentiality of tax return information. The information in this
system is used in investigations relating to unauthorized use of the
Integrated Data Retrieval Files.
The proposed rule requested that public comments be sent to the
Director, Office of Disclosure, Internal Revenue Service no later than
September 11, 1995. No comments pertaining to the proposed rule were
received by the Office of Disclosure. Accordingly, the Department of
the Treasury is hereby giving notice that the system of records
entitled, ``Integrated Data Retrieval System (IDRS) Security Files--
Treasury/IRS 34.018,'' is exempt from certain provisions of the Privacy
Act. The following are the reasons why certain systems of records
maintained by the Internal Revenue Service are 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
request. The reasons for exempting systems of records from the
foregoing provision are as follows:
(i) The release of disclosure accounting would put the subject of
an investigation on notice of the existence of an investigation 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 is 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. In the case of a delinquent account, such
release might enable the subject of the investigation to dissipate
assets before levy;
(iii) Release to the individual of the disclosure accounting would
alert the individual as to which agencies were investigating this
person 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),(2),(3), and (4), (e)(4)(G) and (H) and
(f). These provisions of the Privacy Act relate to an individual's
right to notification of the existence of records pertaining to such
individual; requirements for identifying an individual who requests
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 such record systems. The reasons for exempting
systems of records from the foregoing provisions are as follows: To
notify an individual at the individual's request of the existence of
records in an investigative file pertaining to such individual or to
grant access to an investigative file 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 systems of records from the foregoing provisions
are as follows:
(i) The Internal Revenue Service will limit its inquiries to
information which is necessary for the enforcement and administration
of tax laws. However, an exemption from the foregoing provision is
needed because, particularly in the early stages of a tax audit or
other investigation, it is not possible to determine the relevance or
necessity of specific information.
(ii) Relevance and necessity are questions of judgement and timing.
What appears relevant and necessary when collected may subsequently be
determined to be irrelevant or 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 Internal Revenue Service
relating to violations of law within the jurisdiction of other
agencies, the Service processes this information through Service
systems in order to forward the material to the appropriate agencies.
As required by Executive Order 12866, it has been determined that
this final 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 this rule will not have
significant economic impact on a substantial number of small entities.
The final 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 rule will
not impose new record keeping, 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:
1. The authority citation for Part 1 continues to read as follows:
Authority: 5 U.S.C. 301 and 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]
2. Section 1.36 of Subpart C is amended by adding the following
text in numerical order under the heading THE INTERNAL REVENUE SERVICE:
* * * * *
(b) * * *
(1) * * *
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Name of System No.
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* * * * *
Integrated Data Reporting System (IDRS) Security Files........ 34.018
[[Page 60783]]
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Dated: October 3, 1997.
Alex Rodriguez,
Deputy Assistant Secretary (Administration)
[FR Doc. 97-29794 Filed 11-12-97; 8:45 am]
Billing Code: 4830-01-F
