[Federal Register Volume 59, Number 54 (Monday, March 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-6543]
[[Page Unknown]]
[Federal Register: March 21, 1994]
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DEPARTMENT OF THE TREASURY
Internal Revenue Service
Privacy Act of 1974, as Amended; System of Records
AGENCY: Internal Revenue Service, Treasury.
ACTION: Notice of proposed amendment of a Privacy Act System of
Records.
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SUMMARY: In accordance with the requirements of the Privacy Act of
1974, as amended, 5 U.S.C. 552a, the Treasury Department, Internal
Revenue Service, gives notice of a proposed amendment to the system of
records entitled Individual Master File (IMF)--Treasury/IRS 24.030. The
system notice was last published in its entirety in the Federal
Register, Vol. 57, page 14040, April 17, 1992.
The purpose of this amendment is to add a routine use to allow the
disclosure of taxpayer identity information to payors of reportable
payments subject to the backup withholding provisions authorized by
I.R.C. Section 3406(b). This amendment also increases the types of
individuals within the category of individuals covered by this system
of records, as well as reflect the on-line access to Taxpayer
Identification Numbers (TINs) and name controls by authorized users
(i.e., filers of information documents subject to the backup
withholding provisions).
DATES: Comments must be received no later than April 15, 1994. The
amendment to this system of records will be effective April 25, 1994,
unless comments are received which result in a contrary determination.
ADDRESSES: Comments should be sent to the Office of the Assistant Chief
Counsel (Income Tax and Accounting--CC:IT&A:01), Internal Revenue
Service, 1111 Constitution Avenue, NW., Room 5238, P.O. Box 7604, Ben
Franklin Station, Attn: CC:Corp:T:R (IA-8-92), Washington, DC 20044.
Comments will be made available for inspection and copying in the
Freedom of Information Reading Room, Internal Revenue Service, Office
of Disclosure, 1111 Constitution Avenue, NW., Washington, DC 20224,
upon request.
FOR FURTHER INFORMATION CONTACT: For information on the operating
systems specifications, contact Frances Drummond, Programmer/Systems
Administrator, Office of the Assistant Commissioner (Information
Systems Management), Internal Revenue Service, P.O. Box 1208, Route 9 &
Needy Road, Martinsburg, West Virginia 25401 or telephone (304) 263-
8700 (not a toll-free call); or, for general information, Delores
Schmidt, Senior Program Analyst, Office of the Assistant Commissioner
(Collection), Information Reporting Program, Internal Revenue Service,
1111 Constitution Avenue, NW., Room 2013, Washington, DC 20224 or
telephone (202) 622-3487 (not a toll-free call).
SUPPLEMENTARY INFORMATION: The proposed changes will enable the
implementation of the TIN Matching Program. Participation in the
program will initially be limited to 200 randomly selected participants
plus some non-randomly selected Federal agencies. A criteria for
selection in this program is that each of these participants will have
previously filed information documents pursuant to the backup
withholding provisions in I.R.C. 3406. The participants in the
prototype program will be able to match the TIN and name control of any
payee who may receive a reportable payment under the backup withholding
provisions prior to filing the relevant information return with the
IRS. Under the program, prior to filing an information return, a payor
of a reportable payment as defined in section 3406(b) of the Internal
Revenue Code of 1986 may contact, via their own computer and modem, the
Internal Revenue Service (IRS) concerning the TIN and name control
furnished by a payee of that payment. Upon receiving the inquiry, the
Service will advise the payor whether the name control and TIN
combination provided by the payor matches a name control and TIN
combination retained on the Service's Individual Master File.
Before undertaking major and costly steps to implement a full-scale
program, the Service wants to measure the costs and benefits of this
program. Accordingly, the Service plans to commence with up to a two-
year prototype (i.e., pilot project). Under the prototype, payors will
be given a unique identifiable Personal Identification Number (PIN) and
a user code for access to the Service's stand-alone computer. The
Service's computer will have a data base of all Employer Identification
Numbers (EINs) and Social Security Numbers (SSNs). The prototype will
respond to an inquiry only when there is a ``no-match''. This ``no-
match'' response to an inquiry will only state that there is no
existing match with IRS records. No other information will be provided.
This program will expire two years after the implementation date of the
prototype.
The records in this program are part of the Individual Master File
(IMF) system of records--Treasury/IRS 24.030. The specific changes to
this system of records are consistent with the purpose of this system
to make relevant disclosures concerning tax administration.
Dated: March 15, 1994.
G. Dale Seward,
Acting Deputy Assistant Secretary (Administration).
Treasury/IRS 24.030
Individual Master File (IMF), Returns Processing--Treasury/IRS.
* * * * *
Description of the change: Replace current text with the following
text:
Individuals who file and/or are included on Federal Individual
Income Tax Returns (i.e., Forms 1040, 1040A, and 1040EZ); individuals
who file other information filings; and power of attorney notifications
for individuals.
* * * * *
Description of the change: Replace current text with the following
text:
Disclosure of returns and return information may be made only as
provided by: (1) 26 U.S.C. 3406, and (2) 26 U.S.C. 6103.
* * * * *
[FR Doc. 94-6543 Filed 3-18-94; 8:45 am]
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