[Federal Register Volume 63, Number 246 (Wednesday, December 23, 1998)]
[Proposed Rules]
[Pages 71050-71052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33905]
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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.
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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
[[Page 71052]]
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]
1. 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]
2. 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) * * *
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Name of system No.
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* * * * *
Audit Trail Lead Analysis System............................. 34.020
* * * * *
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* * * * *
Dated: November 10, 1998.
Shelia Y. McCann,
Deputy Assistant Secretary (Administration).
[FR Doc. 98-33905 Filed 12-22-98; 8:45 am]
BILLING CODE 4830-01-P
